Please answer P21.8

P21.7B (LO 2,4) (Lessor Computations and Entries, Sales-Type Lease with Guaranteed Residual Value Brigger Tally Inc. manufactures a high-speed candy making machine with an estimated life of 10 years and leases it to Old Mill Candy for a period of 8 years. The normal selling price of the machine is 5169,579, and its guaranteed residual value at the end of the non-cancelable lease term is estimated to be 58,000. Old Mill will pay rents of $25,000 at the beginning of each year. Brigger incurred costs of $131,000 in manufacturing the machine and $4,500 in legal fees directly related to the signing of the lease. Brigger has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 6 Instructions (Round all numbers to the nearest dollar) al Discuss the nature of this lease in relation to the lessor and compute the amount of each of the following items (1) Lease receivable at commencement of the lease (2) Sales price (3) Cost of sales (b) Prepare a year lease amortization schedule for Brigger, the losse Id Prepare all of the lessor's journal entries for the first year. P21.8B (LO 2,4) (Lessee Computations and Entries, Finance Lease with Guaranteed Residual Value) Assume the same data as in 21.78 and that Old Mill Canly has an incremental burrowing of an expected residual value at the end of the lease of $6,000 Instructions (Round all numbers to the nearest dollar) (a) Discuss the nature of this lease in relation to the lewce, and compute the amount of the initial lease liability, (b) Propan a year lease amortization schedule (o Prepare all of the lessee's journal entries for the first year (d) Suppose Old Mill Candy incurred $3,000 of document preparation costs after the necution of the lease. How would the Initial surment of the lease liability and right-of-Lease be ablected? P21.7B (LO 2,4) (Lessor Computations and Entries, Sales-Type Lease with Guaranteed Residual Value Brigger Tally Inc. manufactures a high-speed candy making machine with an estimated life of 10 years and leases it to Old Mill Candy for a period of 8 years. The normal selling price of the machine is 5169,579, and its guaranteed residual value at the end of the non-cancelable lease term is estimated to be 58,000. Old Mill will pay rents of $25,000 at the beginning of each year. Brigger incurred costs of $131,000 in manufacturing the machine and $4,500 in legal fees directly related to the signing of the lease. Brigger has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 6 Instructions (Round all numbers to the nearest dollar) al Discuss the nature of this lease in relation to the lessor and compute the amount of each of the following items (1) Lease receivable at commencement of the lease (2) Sales price (3) Cost of sales (b) Prepare a year lease amortization schedule for Brigger, the losse Id Prepare all of the lessor's journal entries for the first year. P21.8B (LO 2,4) (Lessee Computations and Entries, Finance Lease with Guaranteed Residual Value) Assume the same data as in 21.78 and that Old Mill Canly has an incremental burrowing of an expected residual value at the end of the lease of $6,000 Instructions (Round all numbers to the nearest dollar) (a) Discuss the nature of this lease in relation to the lewce, and compute the amount of the initial lease liability, (b) Propan a year lease amortization schedule (o Prepare all of the lessee's journal entries for the first year (d) Suppose Old Mill Candy incurred $3,000 of document preparation costs after the necution of the lease. How would the Initial surment of the lease liability and right-of-Lease be ablected