Perry Perry Inc. (PPI) entered into a five-year lease agreement for the use of equipment with Kerry Lee Inc. (KEI) on December 31, 2019. The following information is available: Fair Value of Equipment $375,000 Economic life of equipment 10 years Residual value at end of economic life $30,000 Rate of Return for Lessor 8% PPI's Incremental Borrowing rate 9% REQUIRED: a) The rate implicit in the lease is 8% and this is known to PPI. The lease agreement includes an option to purchase the equipment at the end of the lease term for $15,000. The estimated fair value of the equipment at the end of the lease term is $95,000. i) What is the annual lease payment charged by the Lessor assuming annual fixed payments, with the first payment due on December 31, 2019. ii) Create an amortization schedule for the LESSEE. iii) Prepare all journal entries for the LESSEE for the year 2019, and 2020. b) The rate implicit in the lease is 8% and this is known to PPI, with a payment of $82,229. The lease agreement requires PPI to return the equipment at the end of the lease term. i) Calculate Present Value of Lease payments assuming annual fixed payments, with the first payment due on December 31, 2019. ii) Create an amortization schedule for the LESSOR. iii) Prepare all journal entries for the LESSOR for the year 2019, and 2020.