Problem 5 (14 points) On January 1, 2018, Burrito Bill's leased restaurant equipment from Ove nine-year lease agreement. The lease agreement specifies annuaa Corporation under a payments of $75,00 beginming January 1, 2018, the beginning of the lease, and at each December 31t The equipment was acquired recently by Oval at a cost of $540,000Gs f t expected to have a useful life of 13 years with no salvage value at the end ofiliue? ad sa lease term is 150,000,684.) Oval seeks a 10% return on its lease investments. arrangement, the lease is deemed to be an operating lease. r value) and Required: (a) What will be the effect of the lease on Burrito Bill's carnings for th firs yaho the separate components as well as the total amount. (b) What journal entries will the lessee record during 20 Problem 5 (14 points) On January 1, 2018, Burrito Bill's leased restaurant equipment from Ove nine-year lease agreement. The lease agreement specifies annuaa Corporation under a payments of $75,00 beginming January 1, 2018, the beginning of the lease, and at each December 31t The equipment was acquired recently by Oval at a cost of $540,000Gs f t expected to have a useful life of 13 years with no salvage value at the end ofiliue? ad sa lease term is 150,000,684.) Oval seeks a 10% return on its lease investments. arrangement, the lease is deemed to be an operating lease. r value) and Required: (a) What will be the effect of the lease on Burrito Bill's carnings for th firs yaho the separate components as well as the total amount. (b) What journal entries will the lessee record during 20