Part B: The following questions are worth 10 points cach. Show all of your work. 4. Northwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Hi-Tech manufactured the equipment at a cost of $90,000 Other information includes the following: LEASE TERM 3 YEARS ANNUAL PAYMENTS $40,000 ON JANUARY 1 EACH YEAR LIFE OF ASSET 3 YEARS 8% IMPLICIT INTEREST RATE INCREMENTAL RATE 896 PV, ANNUITY DUE 3 PERIODS, 8% 27833 PV, ORDINARY ANNUITY, 3 PERIODS, 8% 2.5771 (Continued on next page) Intermediate Accounting 2 2 There's no expected residual value. Required: Prepare appropriate journal entries for Hi-Tech Leasing for 2018 and 2019. Assume a December 31 year end. Round your answers to the nearest whole dollar amounts 5. The information that follows pertains to Julia Company a. Temporary differences for the year 2018 are summarized below