please inlcude the steps and journal entries. Thank you

Marigold Corporation leased equipment to Splish Brothers, Inc. on January 1,2020. The lease agreement cailed for annual rental payments of $1,691 at the beginning of each year of the 2 year lease. The equipment has an economic useful life of 6 years, a fair value of $7,800, a book value of $5,800, and Marigold expects a residual value of $5,300 at the end of the lease term. Marigold set the lease . payments with the intent of earning a 8% return, though Splish Brothers is unaware of the rate implicit in the lease and has an incremental borrowing rate of 10%. There is no bargain purchase option, ownership of the lease does not transter at theend of the lease term, and the asset is not of a specialized nature. Cifck here to view factor tables. (For calculation purposes, use 5 decimal ploces as disployed in the factor table provided)