Problem $2$:

Lynnwood Corporation purchased equipment on December $30,2023,$ ata cost o f $140,000.$ Lnmmodd then leased the equipment to the Washington Company on Janyary $1,2024.$ The lesese iscascted sos sales$-$type lease by Lynnwood.

The lease term is non$-$cancelable, $6$ years. Lease payments o $$35,000$ mill be made atthe end dech o for six years, with the first payment on $12/31/2024.$ The estimated economic life of the equiments $3$ years. Lynnwood estimates an $8,000$ residual value at the end of the lesese tem, whichis sngumamedtet The implicit interest rate for Lynnwood is $5\%.$

Present value of $1$ for $6$ periods at $5\%.q,0\mathrm{.}74622$

Present value of an Ordinary Annuity of $1$ for $6$ periods a $5\%q,5\mathrm{.}07569$

Present value of an Annuity Due of $1$ for $6$ periods at $5\%q,5\mathrm{.}32248$

Click to open: $q,$

$q,$

Required:

A$.$ Calculate the amount of Lease Receivable, and prepare a lease ammotization schodulie ore the mont? years of the lease term for the lessor.

B$.$ Prepare the journal entries regarding the lease for the lessor for $2024$ and $2025.$

C$.$ Prepare partial balance sheets for the les or ar of D December $31.2025.$