On January 1, 2020, Sunland Ltd. sold a truck to Bramble Finance Corp. for $74,000 and immediately leased it back. The truck was carried on Sunlands books at $61,000, net of $30,000 of accumulated depreciation. The term of the lease is five years, and title transfers to Sunland at lease end. The lease requires five equal rental payments of $19,521, with each payment made at year end. The appropriate rate of interest is 10%, and the truck has a useful life of five years with no salvage value.

1.Prepare Sunlands 2020 journal entries including any year-end adjusting entries at December 31, 2020