need help on D thank you

Sarasota Incorporated leases a piece of equipment to Metlock Corporation on January 1, 2020. The lease agreement called for annual rental payments of $5,441 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $26,400, a book value of $21.400 and both parties expect a residual value of $8.100 at the end of the lease term, though this amount is not guaranteed. Sarasota set the lease payments with the intent of earning a 6% return, and Metlock 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. Determine the nature of the lease to both Sarasota and Metlock. The lease is a/an operating lease to Sarasota. The lease is a/an operating lease to Metlock. e Textbook and Media List of Accounts Attempts: 1 of 5 used (b) Your answer is correct. Prepare the lease amortization schedule(s) for Metlock for all 4 years of the lease. (Round answers to decimal places, eg. 5,275.) METLOCK CORPORATION Lease Amortization Schedule Annuity-Due Basis Annual Payment Reduction of Lease Liability Interest on Liability Lease Liability 0 $ 0 $ 0 $ 0 $ 19.985 0 5,441 0 5,441 14,544 1 5,441 873 4,568 9.976 2 5,441 598 4,843 5,133 3 5,441 308 5.133 Lease Expense Schedule Lease Expense (Straight-Line) Interest on Lease Liability Amortization of ROU Asset Carrying Value of ROU Asset $ $ 0 $ 0 $ 19.985 0 5,441 873 4568 15,417 5,441 598 4843 10.574 2 5,441 308 5133 5,441 3 5,441 0 5441 0 (c) Your answer is correct Prepare the journal entries for Metlock for 2020 and 2021 (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 20 Right-of-Use Asset 19.985 Lease Llability 19.985 (To record the lease) 20 Lease Liability 5,441 Cash 5,441 (To record lease payment) 31/20 V Lease Expense 5,441 Lease Liability 873 Right-of-Use Asset 4.568 Lease Liability 5,441 Cash 5,441 31/21 Lease Expense 5,441 Lease Llability 598 Right-of-Use Asset 4,843 eTextbook and Media List of Accounts Attempts: 3 of 5 used (d) Your answer is partially correct. Suppose Metlock incurs initial direct costs of $700 related to the lease. Prepare the journal entries for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) bate Account Titles and Explanation Debit Credit Right-of-Use Asset 20,685 Cash 700 Lease Llability 19.985 (To record the lease) Lease Liability 5,441 Cash 5,441 (To record lease payment) L/20 Lease Expense Lease Liability 873 Right-of-Use Asset