On January 1, 2020, a machine was purchased for $1,200,000 by Skysong Co. The machine is expected to have an B-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to Sheridan Inc. for 3 years on January 1, 2020, with annual rent payments of $285,000 due at the beginning of each year, starting January 1, 2020. The machine is expected to have a residual value at the end of the lease term of $562,500, though this amount is unguaranteed. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much should Skysang report as income before income tax on this lease for 2020? Income before income tax $ e Textbook and Media List of Accounts Record the journal entries Sheridan would record for 2020 on this lease, assuming its incremental borrowing rate is 5% and the rate implicit in the lease is unknown. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to decimal places, eg,5,275. Record journal entries in the order presented in the problem! Date Account Titles and Explanation Debit Credit (To record the lease) (To record lease payment) Textbook and Media Assistance Used e Textbook 1 eTextbook 2 List of Accounts Assistance Used Suppose the lease was only for one year only one payment of the same amount at commencement of the lease), with a renewal option at market rates at the end of the lease, and Sheridan elects to use the short-term lease exception. Record the journal entry Sheridan would record for 2020 on this lease. (Credit account Litles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation 1/1/20 On January 1, 2020, a machine was purchased for $1,200,000 by Skysong Co. The machine is expected to have an B-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to Sheridan Inc. for 3 years on January 1, 2020, with annual rent payments of $285,000 due at the beginning of each year, starting January 1, 2020. The machine is expected to have a residual value at the end of the lease term of $562,500, though this amount is unguaranteed. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much should Skysang report as income before income tax on this lease for 2020? Income before income tax $ e Textbook and Media List of Accounts Record the journal entries Sheridan would record for 2020 on this lease, assuming its incremental borrowing rate is 5% and the rate implicit in the lease is unknown. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to decimal places, eg,5,275. Record journal entries in the order presented in the problem! Date Account Titles and Explanation Debit Credit (To record the lease) (To record lease payment) Textbook and Media Assistance Used e Textbook 1 eTextbook 2 List of Accounts Assistance Used Suppose the lease was only for one year only one payment of the same amount at commencement of the lease), with a renewal option at market rates at the end of the lease, and Sheridan elects to use the short-term lease exception. Record the journal entry Sheridan would record for 2020 on this lease. (Credit account Litles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation 1/1/20