Reporting a Sales-Type LeaseLessor

On January 1, 2020, the first day of its accounting year, Lessor Inc., leased certain property at an annual payment of $12,000 receivable at the beginning of each year for 5 years. The first payment was received immediately. The leased property, which is new, has an estimated useful life of 8 years and an estimated residual value of $9,000 (expected to be received by lessor but not guaranteed by the lessee). Lessors implicit rate is 6%. Lessor had no other costs associated with this lease and properly classified the lease as a sales-type lease. The leased equipment was carried on Lessor Inc.s books at $39,000.

Required

a. Calculate the value of the lease receivable at the commencement of the lease

• Note: Round answer to the nearest dollar.
• Note: Do not use a negative sign with your answer.

Lease receivable

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b. What amounts would be presented in the balance sheet as of December 31, 2020, related to this lease?

Note: Round amounts to the nearest whole dollar.

Balance Sheet Dec. 31, 2020 Assets Current Assets Lease Receivable $ 12000 Noncurrent Assets Lease Receivable $ 0 c. What amounts would be presented in the income statement for the year ended December 31, 2020, related to this lease? Note: Round amounts to the nearest whole dollar. Income Statement 2020 Revenue - $ 0 Interest revenue $ 0 Expenses - $ 0 Please answer all parts of the