On January 2, 20X1, Gold Star Leasing Company leases equipment to Brick Co. with 5 equal annual payments of $40,000, payable beginning December 31, 20X1. Brick Co. agrees to guarantee the $25,000 residual value of the asset at the end of the lease term. Bricks incremental borrowing rate is 10% and Brick does not know that Gold Stars implicit interest rate is 8%. Assume this is a financing type lease.

	PV Annuity Due	PV Ordinary Annuity	PV Single Sum
8%, 5 periods	4.31213	3.99271	0.68058
10%, 5 periods	4.16986	3.79079	0.62092

a.) What is the amount of lease receivable capitalized?

b.) What is the balance of the lease receivable on December 31, 20X1?

c.) What is the balance of the lease receivable on January 1, 20X2?

d.)