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Assume that on January 1,2020, Elmer's Restaurants sells a computer system to Wildhorse Finance Co. for $740,000 and immediately leases the computer system back. The relevant information is as follows. 1. The computer was carried on Elmer's books at a value of $660,000. 2. The term of the non-cancal able lease is 3 years; title will not transfer to Elmer's, and the expected residual value at the end of the lease is $510,000, all of which is unguaranteed. 3. The lease agreement requires equal rental payments of $116,390 at the beginining of each year: 4. The incremental borrowing rate for Elmer is B \%. Elmer is aware that Wildhorse Finance Co cen the thinual cental to insure a rate of return of 8x 5. The computer has a fair value of $740,000 on January 1,2020 , and anestimated economic life of 10 years. Prepare the joumal entries for both the lessee and the lessor for 2020 to reflect the sale and ieaseback agreenent. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to O decimal places, es, 5,275, Credit account tities Elmer's Restaurants (Lessee) (To record sale of equipmeot) (To record the lease) (To recond lense powment) Wildhorse Finance Co. (Lessor) (To record purchase of equipment) (To record the leaseback) (To recond the rewognibion of the revenue) (To record purchase of equipment) (To record the leaseback) (To record the recognition of the revenue) (To record depreciation expense on the leased equipment)