Practice Exercise 21A-5 a-c On January 1, 2017, Metlock Co. leased a building to Ivanhoe Corp. The relevant information related to the lease is as follows The lease arrangement is for 5 years. The building is expected to have a residual value at the end of the lease of $2,040,000 (unguaranteed). 1. The leased building has a cost of $2,160,000 and was purchased for cash on January 1, 2017. 2. The building is depreciated on a straight-line basis. Its estimated economic life is 30 years with no salvage value. 3. Lease payments are $250,000 per year and are made at the beginning of the year. 4. 5. 6. Ivanhoe has an incremental borrowing rate of 9%, and the rate implicit in the lease is unknown to Ivanhoe. Both Metlock and Ivanhoe are on a calendar-year basis. Click here to view the factor table (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) 2017, (Credit account titles are automatically indented when amount is entered. Do a Prepare the journal entries that Metlock Co. should make in Prepare the journal entries that tvanhoe Corp. should make in 2017. (Credit account titles are automaticaly indented Round answers to 0 decimal places, e.g. 5,275) when amount is entered. Do not indent manually Date Account Titles and Explanation Debit Credit To record the lease) (To record lease liablity) 12/31/17 SHOW LIST OF ACCOUNTS If Ivanhoe paid $35,000 to a real estate broker on January 1, 2017, as a fee for finding the lessor, how much of that amount should Ivanhoe Corp. report as an expense in 20177 Expense should be reported Click if you would like to Show Work for this question: Qren Show Wor