NEED HELP ANSWERING THIS HW QUESTION

Sheffield Corporation leased equipment to Shamrock, Inc. on January 1, 2020. The lease agreement called for annual rental payments of $1,105 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $8,700, a book value of $6,700, and Sheffield expects a residual value of $6,200 at the end of the lease term. Sheffield set the lease payments with the intent of earning a 4% return, though Shamrock is unaware of the rate implicit in the lease and has an incremental borrowing rate of 6%. 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.

a) What is the amount of the rental payments used in the lease agreement?(Round answer to 0 decimal places, e.g. 5,275.)

-rental payments $_____________________

b) DO the entries for Sheffield for 2020.

\fDate Account Titles and Explanation Debit Credit [ i| | S a: E (To record the recognition of the revenue) [ $ | | S S S % (T 0 record depreciation expense on the leased equipment)