Recording Sales-Type Lease, Unguaranteed Residual Value-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 equipment reverts to the lessor at the end of the lease term at which time the lessor estimates that the equipment will have an unguaranteed residual value of $2,000. 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. $ 10,891 x Amortization Schedule Journal 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. Date Lease Payment Interest Revenue Reduction of Lease Receivable Jan. 1, 2020 Lease Receivable $ 46,965 Jan. 1, 2020 $ 10,891 * $ Jan. 1, 2021 10,891 x 0 $ 2,886 x 10,891 x 36,074 x 8,005 x 28,069 x Jan. 1, 2022 10,891 x 2,246 x 8,645 x 19,423 x Jan. 1, 2023 10,891 x 1,554 x 9,337 x 10,086 x Jan. 1, 2024 10,891 x 807 x 10,084 x 2 x Jan. 1, 2025 Total $ 2 x 54,457 * $ 0.18 x 1.82 x 0 7,492 x $ 46,965