Recording Sales-Type Lease, Purchase Option-Lessor Flint Company leased equipment to Land Company for a five-year period. Flint paid $46,965 for the equipment, its current carrying value (estimated useful life five years). The lease started on January 1, 2020. Flint uses a target rate of return of 8% in all lease contracts. The first payment was on January 1, 2020, and the accounting periods end on December 31. The lease contract contains a purchase option stating that Land Company can purchase the equipment for $4,000 on January 1, 2025, at which time its estimated residual value is $6,500. It is reasonably certain that Land Company will exercise the purchase option at the end of the lease term. Required a. Compute the annual payment for the lessor. Note: Round answer to the nearest dollar. Note: Do not use a negative sign with your answer. 0 Amortization Schedule ournal Entries b. Prepare an amortization schedule of the lease receivable for the lessor. Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. Note: Include any net rounding difference to Lease Receivable in the Interest Revenue amount for Jan. 1, 2025. Lease Interest Reduction of Lease Date Payment Revenue Lease Receivable Receivable Jan. 1, 2020 $ 0 Jan. 1, 2020 $ 0 $ 0 $ 0 0 Jan. 1, 2021 0 0 0 0 Jan. 1, 2022 0 0 0 0 Jan. 1, 2023 0 0 0 Jan. 1, 2024 0 0 0 Jan. 1, 2025 0 0 0 Total $ 0 $ 0 $ ooooooo Oo oo Olo C. Provide journal entries for 2020 and 2021 for the lessor. Note: Round your answers to the nearest whole dollar. Date Account Name Dr. Cr. Jan. 1, 2020 0 0 O 0 To record lease receivable Jan. 1, 2020 0 0 0 0 To record lease payment Dec. 31, 2020 0 0 0 0 To record interest Jan. 1, 2021 . 0 0 0 0 To record lease payment Dec. 31, 2021 0 0 0 0 To record interest