Problem 2 (22 points) On January 1, 20, Rory Corporation (lessor) leased a delivery truck to Calhoun Company (lessee). The lease was a four-year lease, with four equal payments, the first being made on December 31, Y20 with subsequent payments being made on December 31 of each year. At the conclusion of the lease Calhoun can purchase the truck at a bargain price of $12,000. Rory Corporation's implicit interest rate is 12% and Calhoun's incremental borrowing rate is 9%. Calhoun is not aware of Rory's implicit interest rate. The delivery truck is being leased at its sales price of $90,000; its cost is $80,000. The useful life of the truck is seven-years. This is a Finance lease. For credit show all computations. Required: Determine the dollar amount of the lease payments that will be charged by Rory Corporation and the liability to be recorded by Calhoun Company. 2) Complete the loan amortization schedules below for both Calhoun and Rory Companies. 3) Prepare any necessary journal entries (including amortization) for both companies on 1/1/20, 12/31/y20, and 12/31/y21 Calhoun Loan Amortization Schedule Pmt. Int Prin Rory Loan Amortization Schedule Pmt. Int Prin Date Bal Calhoun (lessee) Rory (lessor) Debit Credit Debit Credit Problem 2 (22 points) On January 1, 20, Rory Corporation (lessor) leased a delivery truck to Calhoun Company (lessee). The lease was a four-year lease, with four equal payments, the first being made on December 31, Y20 with subsequent payments being made on December 31 of each year. At the conclusion of the lease Calhoun can purchase the truck at a bargain price of $12,000. Rory Corporation's implicit interest rate is 12% and Calhoun's incremental borrowing rate is 9%. Calhoun is not aware of Rory's implicit interest rate. The delivery truck is being leased at its sales price of $90,000; its cost is $80,000. The useful life of the truck is seven-years. This is a Finance lease. For credit show all computations. Required: Determine the dollar amount of the lease payments that will be charged by Rory Corporation and the liability to be recorded by Calhoun Company. 2) Complete the loan amortization schedules below for both Calhoun and Rory Companies. 3) Prepare any necessary journal entries (including amortization) for both companies on 1/1/20, 12/31/y20, and 12/31/y21 Calhoun Loan Amortization Schedule Pmt. Int Prin Rory Loan Amortization Schedule Pmt. Int Prin Date Bal Calhoun (lessee) Rory (lessor) Debit Credit Debit Credit