Marigold Incorporated leases a piece of equipment to Splish Brothers Corporation on January 1, 2020. The lease agreement called for annual rental payments of $6,317 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 5 years, a fair value of $24,700, a book value of $19,700, and both parties expect a residual value of $8,100 at the end of the lease term, though this amount is not guaranteed. Marigold set the lease payments with the intent of earning a 6% return, and Splish Brothers is aware of this rate. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer is correct. What is the amount of the rental payments used in the lease agreement? (Round answer to O decimal places, e.g. 5,275.) Rental payments $ eTextbook and Media List of Accounts 6317 Attempts: 1 of 10 used (b) Prepare the entries for Marigold for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record the recognition of the revenue) (To record depreciation expense on the leased equipment) Debit Credit