On January 1, 2023, Sandhill Inc. enters into a 5-year non-cancellable lease with Wilson Ltd. for equipment that has an estimated useful life of 5 years and a fair value of $1,994,000. Sandhill has an incremental borrowing rate of 8% and Wilson's implicit rate is 6%. Sandhill uses the straight-line depreciation method to depreciate assets. Sandhill will make annual lease payments on January 1 of each year (with the first payment due at the beginning of the lease) based on the fair value of the equipment. The lease agreement includes a guarantee that Sandhill will take over ownership of the equipment from Wilson for a final payment of $106,500. Both companies adhere to IFRS. (a) Calculate the lease payment Wilson Ltd, will charge Sandhill Inc assuming that there is no mark up on the fair value of the equipment. (Round present value factor calculations to 4 decimal places, e. 12.5124) Click here to view the factor table, Lease payment Present the journal entries that Sandhill Inc. would record during the first year of the equipment lease. (Credit occount titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter 0 for the amounts. List all debit entries before credit entries. Record joumal entries in the order presented in the problem. Round onswers to 0 decimal ploces, e. 5.275 .)