On January 1, 2024, Rick's Pawn Shop leased a truck from Corey Motors for a six-year perlod with an opton to extend the lease for three years. - Rick's had no significant economic incentive as of the beginning of the lease to exerclse the three-year extension option. Annual lease payments are $13,000 due on December 31 of each year, calculated by the lessor using a 4% discount rate. - The expected useful llfe of the asset is nine years, and its falr value is $97,500. - Assume that at the beginning of the third year. January 1, 2026, Rick's had made significant improvements to the truck whose cost could be recovered only if It exercises the extension option, creating an expectation that extension of the lease was "reasonably certaln." - The relevant interest rate at that time was 5%. Note: Use tables, Excel, or a financlal calculator. (FV of \$1. PV of \$1. FVA of \$1. PVA of $1. FVAD of $1 and PVAD of \$1) Required: 1. Prepare the Journal entry, If any, on January 1 and on December 31 of the third year, 2026 for the lessee to account for the reassessment. 2. Prepare the Journal entry, if any, on January 1 and on December 31 of the third year, 2026 for the lessor to account for the reassessment. Prepare the journal entry, if any, on January 1 and on December 31 of the third year, 2026 for the lessee to account for the reassessment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar. Prepare the journal entry, if any, on January 1 and on December 31 of the third year, 2026 for the lessor to account for the reassessment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar