Nash Leasing Company signs a lease agreement on January 1, 2017, to lease electronic equipment to Crane Company. The term of the noncancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Crane Company has the option to purchase the equipment for $15,700 upon termination of the lease. 2. The equipment has a cost and fair value of $157,000 to Nash Leasing Company. The useful economic life is 2 years, with a salvage value of $15,700. 3. Crane Company is required to pay $5,000 each year to the lessor for executory costs. 4. Nash Leasing Company desires to earn a return of 9% on its investment. 5. Collectibility of the payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. Click here to view factor tables (a) Prepare the journal entries on the books of Nash Leasing to reflect the payments received under the lease and to recognize income for the years 2017 and 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round present value factor calculations to 5 decimal places, e.g. 0.527552 and the final answers to O decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit 1/1/17 Lease Receivable 157000 Equipment 157000 12/31/17 v Cash Executory Costs 5000 Lease Receivable Interest Revenue 12/31/18 Cash Executory Costs Lease Receivable Interest Revenue (b) Assuming that Crane Company exercises its option to purchase the equipment on December 31, 2018, prepare the journal entry to reflect the sale on Nash's books. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round present value factor calculations to 5 decimal places, e.g. 0.527552 and the final answers to 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit 12/31/18 Cash Lease Receivable