Pronghorn Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected lifespan of eight years, no estimated salvage value, and a cost to Lantus, the lessor of $170,000. The terms of the lease are as follows: The lease term begins on January 1, 2019, and runs for 5 years. The lease requires payments of $37,396 at the beginning of each year starting January 1, 2019. At the end of the lease term, the equipment is to be returned to the lessor. . Lantus' implied interest rate is 5%, while Pronghorn's borrowing rate is 6%. Pronghorn uses straight-line depreciation for similar equipment. The year-end for both companies is December 31. Assuming that both companies follow ASPE. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Determine the present value of the minimum lease payments. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Present Value $ 170000Prepare Lantus' lease amortization schedule using the effective interest method. (Round answers to 0 decimal places, e.g. 5,275.) Net Investment Net Date Payment Interest Recovery Investment January 1, 2019 170000 January 1, 2019 $ 37396 37396 132604 January 1, 2020 37396 6630 30766 101838 January 1, 2021 37396 5092 32304 69534 January 1, 2022 37396 3477 33919 35615 January 1, 2023 37396 1781 35615 0 $ 186980 16980 170000Prepare the 2019 journal entries for Lantus Corporation, the lessor. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2019 Equipment 170000 Cash 170000 (To record purchase of equipment.) Lease Receivable 170000 Equipment 170000 (To record inception of lease.) Cash 37396 Lease Receivable 37396 (Collection of lease payment.) Dec. 31, 2019 # Cash 6630 Interest Income 6630 (To record interest.)