Problem 8. Lessor leases asset to Lessee on 1/1/2020. Lease term is 6 years. Lease payment is $97,580.60/year with the first payment due at the inception of the lease. Lessor's implicit rate is 12%dyear and this rate is known by Lessee. Fair market value of leased asset is $600,000. Remaining economic life of asset is 10 years. At the end of the initial 6 year term. Lessee has the option to renew the lease for another 2 years with the same lease payment. Required 1. Record the lease in the Lessee's books on 1/1/2020. Assume that on 1/1/2020, it is reasonably certain that the Lessee will exercise the renewal option at the end of the 6 year initial lease term. Also, prepare Lessee's entry to record amortization expense for year 2020. Enter your entries below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. Entries by Lessee at inception of lease on 1/1/2020: Account Debit Credit 1 1 1 1 Entry by Lessee at 12/31/2020 to record amortization expense: Account Debit Credit N N 2. Redo #1 assuming that on 1/1/2020, it is NOT reasonably certain that the Lessee will exercise the renewal option at the end of the 6 year initial lease tem. Enter your entries below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. Entries by Lessee at inception of lease on 1/1/2020: Account Debit Credit mm w w Entry by Lessee at 12/31/2020 to record amortization expense: Account Debit Credit 4 4 Column1 Accumulate depreciation (Bal. Sht) Cash (Bal. Sit) Deferred reht revenue (Bal. Sht) Equipment Bal. Sht) Lease payable (Bal. Sht) Lease receivable (Bal. Sht) Note payabile (Bal. Sht) Prepaid sen ice contract (Bal. Sht) Right-of-Use asset (Bal. Sht) Warehouse Bal. Sht) Amortization expense Inc. Stmt) Cost of goods sold (Inc. Stmt) Gain on sale of warehouse (Inc. Stmt) Interest expense (Inc. Stmt) Interest revenue (Inc. Stmt) Lease experse (Inc. Stmt) Lease revenue (Inc. Stmt) Misc. expenses (Inc. Stmt) Rent revenue (Inc. Stmt) Sales revenile (Inc. Stmt)