Q2. Northwestern Edison Company leased equipment from Hi-Tech Leasing on January 1. 2020. Hi-Tech manufactured the equipment at a cost of $90,000. Other information: 3 years Lease term Annual payments $40,000 on January 1 each year Life of asset 3 years Implicit interest rate 8% Incremental rate 8% PV, annuity due, 3 periods, 8% 12.7833 PV, ordinary annuity, 3 periods, 8% 2.5771 There is no expected residual value. Required: Prepare appropriate journal entries for Hi-Tech Leasing for 2020 and 2021. Assume a December 31 year-end. Round your answers to the nearest whole dollar amounts