please, solve the question and correct them.

On January 1, 2024, Rick's Pawn Shop leased a truck from Corey Motors for a six-year period with an option to extend the lease for three years. - Rick's had no significant economic incentive as of the beginning of the lease to exercise the three-year extension option. Annual lease payments are $26,000 due on December 31 of each year, calculated by the lessor using a 7% discount rate. - The expected useful life of the asset is nine years, and its fair value is $195,000. - Assume that at the beginning of the third year, January 1, 2026, Rick's had made significant improvements to the truck whose cost could be recovered only if it exorcises the extension option, creating an expectation that extension of the lease was "reasonably certain: - The relevant interest rate at that time was 8%. Note: Use tables, Excel, or a financial calculator. (FV of \$1. PV of \$1. EVA of \$1, PVA of \$1, FVAD of \$1 and PVAD of \$1) Required: 1. Prepare the journal entry, if any, on January 1 and on December 31 of the third year, 2026 for the lessee to account for the reassessment. 2. Prepare the journal entry, if any, on January 1 and on December 31 of the third year, 2026 for the lessor to account for the reassessment. Complete this question by entering your answers in the tabs below. Prepare the journal entry, if any, on January 1 and on Dectember 31 of the third year, 2026 for the lessee to account for the reassessment. Note: if no entry is required for a transaction/event, select "No journal entry requifed" in the first account ficld. Round your intermediate and final answers to nearest whole doliar. On January 1, 2024, Rick's Pawn Shop leased a truck from Corey Motors for a six-yoat period with an option to extend the lease for three years. - Rick's had no significant economic incentive as of the beginning of the lease to exercise the thee-year extension option. Annual lease payments are $26.000 due on Decembor 31 of each year, calculated by the lessor using a 7% discount rate. - The expected useful life of the asset is nine years, and its fair value is $195,000. - Assume that at the beginning of the third yeac, January 1, 2026, Rick's had made significant improvements to the truck whose cost could be recovered only if it exercises the extension option, creating an expectation that extension of the lease was "reasonably certain." - The relevant interest rate at that time was 8%. Note: Use tables, Excel, or a financial calculatoc. (PV of S1, PV of \$1, EVA of S1, PVA of S1, EVAD of S1 and PVAD o(S1) Required: 1. Prepare the journat entry, if any, on January 1 and on December 31 of the third year, 2026 for the lessee to account for the reassessment. 2. Prepare the journal entry, if any, on January 1 and on December 31 of the third year, 2026 for the lessor to account for the reassessment. Complete this question by entering your answers in the tabs below. Prepare the journal entry, if any, on lanuary 1 and on December 31 of the third yeac, 2026 for the lessor to account for the reassessment. Note: If no entry is required for a tranactionvevent, select "No journal endry required" in the first account foid. Round your insermedute and fmal answers to nearest whole dollar. Each of the four independent situotions below describes a sales-type lease in which annual lease payments of 520,000 are payable at the beginning of each yeac Each is a finance lease for the lessee. Note: Use tables, Excel, or a financial calculator. (FV or \$1, PV of \$1. EVA of \$1, PVA of \$1. EVAD of \$1 and PVAD o(\$1) Determine the following omounts at the beginning of the loase: Note: Round your final answers to nearest whole dollat