P21.10 (LO 2, 4) (Lessee Computations and Entries, Finance Lease with Unguaranteed Residual Value) Assume the same data as in P21.9, with National Airlines having an incremental borrowing rate of 8%. a. Discuss the nature of this lease in relation to the lessee, and compute the amount of the initial lease entries for the first year. d. Suppose Chambers Medical Center incurred $7,000 of document preparation costs after the execu- tion of the lease. How would the initial measurement of the lease liability and right-of-use asset be affected? P21.9 (LO 2,4) Groupwork (Lessor Computations and Entries, Sales-Type Lease with Unguar- anteed Residual Value) George Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equip- ment is $299,140, and its unguaranteed residual value at the end of the lease term is estimated to be $20,000. National will pay annual payments of $40,000 at the beginning of each year. George incurred costs of $180,000 in manufacturing the equipment and $4,000 in sales commissions in closing the lease. George has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 8%. Instructions a. Discuss the nature of this lease in relation to the lessor and compute the amount of each of the fol- lowing items. 1. Lease receivable. 2. Sales price. 3. Cost of goods sold. b. Prepare a 10-year lease amortization schedule for George, the lessor. c. Prepare all of the lessor's journal entries for the first year. Instructions