On January 1, 2019, Grey Sloan Inc.,leased several computers under a four-year operating lease agreement from McSteamy Leasing, The contract calls for four annual rent payments of $12,000 each, payable on January 1 of each year beginning January 1, 2019. The present value of these lease payments based on a 10% rate is $42,000 The computers were acquired by McSteamy at a cost of $70,000 and were expected to have a useful life of eight years with no residual value. Both firms record amortization and depreciation annually. a. Prepare all the joumal entries for McSteamy Leasing for 2019, including any adjustments needed at the end of the year. b. What is the impact of this operating lease to McSteamy's 2019 eamings? Explain your answer with details.

On January 1, 2019. Grey Sloan incloased several comers under a four year operating an agraro Meting. The colour 12.00 cach payable on anar 1 ed each year beginning away 1, 2019. The presentator of the lease payments based on to the crew why west cost of 570,000 and were expected to have a sede of eight years with no real valor tothom recordamotration and degradation a Prepare all the journal entries for Me Steamy leasing for 2010. ning any added at the end of the year What is the impact of this operating lease lo McStouny 2019 caming? Explain your wer with detail 10pt For the foot WALTH 10 Cor ALTINF10 Mac) BIS Paragraph Anal X X CH BEH + 20 EE AZT XaBQ c EECH 2 AT 11