On 1/1/A, Lee Lessor leases equipment to Leilani Lessee. The equipment is expected to last 20 years, but the lease term is only 4 years. The 1/1/A fmv of the equipment is $400k and lessor expects it to be worth $300k when returned on 12/31/D, although this amount is not guaranteed. Lessor's interest rate for similar leasing arrangements is 10% and lessee's marginal borrowing rate is 8%. No BPO is offered and no title transfer is included in the lease contract. Payments are due each 1/1 beginning immediately.

a. annual lease payment? [55951.89]

b. lessee lease inception entry?

c. Lessor lease inception entry?

d. Lessee amortization at 12/31/A? [42038]