On December 31, 2019, Wise Corp signs a 3-year, non-cancelable lease agreement to lease equipment to Alliance Company. The following information pertains to this lease agreement. 1. The agreement requires three equal annual rental payments of $60,671 beginning on December 31, 2019. Additionally, there is an unguaranteed residual value of $140,000 at the end of the lease. 2. The fair value of the equipment on December 31, 2019, is $280,000. 3. The equipment has an estimated economic life of 7 years. 4. The lease is nonrenewable. At the termination of the lease, the equipment reverts to the lessor. 5. The Wise's implicit rate is 8%, but this is not known by Alliance. Alliance's incremental borrowing rate is 9%. Instructions a. Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the cash payments and expenses related to this lease for the years 2019, 2020 and 2021. Alliance Company's fiscal year-end is December 31. (18 points) b. Assume instead that the residual value of $140,000 at the end of the lease is guaranteed (expected residual value at the end of the lease is $140,000). Prepare the December 31, 2019 entry to record the lease agreement from the lessee point of view? (3 points)