Problem 15-8 Reassessment of lease term (LO15-2.15-4,15-6] On January 2018 Rick's Pawnshop sea struck from Chumley Motors for six year period with an option to extend the lease for three years no significant economie incentives of the beginning of the lease to exercise the 3 yeat extension option Annu s e payments 515.000 due on December 31 of each year. calculated by the lesson using a 6% discount rate The expected so we of the assus years and its for Value N 598.000. Assume that at the beginning of the third year, January 1, 2020 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 7 VE DESI POSEEVAS EVA HISEVADIB. and PVND O (Use appropriate factors from the tables provided. Required: Prepare the Journal entry way, at the beginning of the third year for the lessee to account for the reassessment 2. Prepare the journal entry. If any at the beginning of the third year for the lessor to account for the reassessment Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry, if any, at the beginning of the third year for the lessee to account for the reassessment of entry is required for a transaction lewent, select No journal intry required in the first account field, Round voor intermediate and final answer to nearest whole dollar) View transaction ist Journal entry worksheet Record the improvements to the truck by Rick's. Enter deb e credits General Journal SEO Clear entry