Q1. Python Company leased equipment from Hope Leasing on January 1, 2020. Hope recently purchased the equipment at a cost of $222,664. Other information: Lease term 3 years Annual payments $80,000 on January 1 cach year Life of asset Fair value of asset S222,664 Implicit interest rate 8% Incremental rate 8% 3 years There is no expected residual value. Required: 1) Show how Hope determined the $80,000 annual lease payments. 2) Prepare appropriate journal entries for Hope for 2020 and 2021. Round your answers to the nearest whole dollar amounts. Prepare an amortization schedule for Hope. Date Cash Payments Effective Interest Revenue Decrease in Balance Outstanding Balance (lease receivable) 1/1/2020 1/1/2020 12/31/2020 12/31/2021 gross lease investment 3) Prepare appropriate journal entries for Python for 2020 and 2021. Assume straight-line depreciation and a December 31 year-end. Round your answers to the nearest whole dollar amounts. Prepare an amortization schedule for Hope. Date Cash Payments Effective Interest expense Decrease in Balance Outstanding Balance (lease payable) 1/1/2020 1/1/2020 12/31/2020 12/31/2021 minimum lease investment