Problem #1 No Residual Value Lease Sampson Leasing Incorporated entered into a lease with Southern Outdoors Corporation (the lessee). The terms of the lease and information about the equipment being leased include: Lease term and estimated economic life of the equipment Estimated residual value at end of lease Sampson's cost of the equipment Fair value of equipment on inception date Implicit interest rate (known to Southern Outdoors) Southern Outdoors' incremental borrowing rate 4 years $0 $20,000 $24,000 5% 6% The first lease payment occurs on January 1, 2021 (date of lease inception). All subsequent lease payments occur on December 31. Assume both parties use straight-line depreciation. REQUIRED: 1. Compute the annual rental payments on the lease. 2. What type of lease is this for Sampson and Southern Outdoors? (Support your answer using the required tests.) 3. Prepare the lease amortization schedule and the journal entries for 2021 for both the lessor and the lessee