P17-96 Determining lease type and recording journal entries - Lessee and lessor (# 2/4) [25 pints] Rentals Inc. leases a vehicle to United Inc. for four years on January 1, 2020, requiring equal annual payments on each January 1. The leased asset, recently purchased new, cost the lessor $45,000. The estimated unguaran- teed value of the asset at the end of the lease term is $5,000. The annual lease payments were computed to yield Rentals Inc. 6%, a rate known to United Inc. The leased asset has a six-year life with zero residual value at the end of year 6. There is no purchase option, and the asset is retained by Rentals Inc. at the end of the lease term. The accounting period for both lessor and lessee ends December 31. Required a. Compute the annual lease payment. b. What type of lease is this to the lessor and lessee? Explain. c. Prepare amortization schedules for the lessee and for the lessor. d. Provide all journal entries associated with this lease for the lessee for the years ended December 31, 2020, and 2021. e. Provide all journal entries associated with this lease for the lessor for the years ended December 31, 2020. and 2021. f. What balances (account titles, amounts) appear on the lessee's balance sheet on December 31, 2020, related to the lease? g. What balances (account titles, amounts) appear on the lessee's income statement for 2020, related to the lease? h. What balances (account titles, amounts) appear on the lessor's balance sheet on December 31, 2020, related to the lease? i. What balances (account titles, amounts) appear on the lessor's income statement for 2020, related to the lease