Reporting Sales-Type Lease, No Residual Value, Initial Direct Costs- Lessor Rex Corporation (lessor) and Lee Company (lessee) agreed to a lease with the following information. Rex's carrying value of the underlying asset (inventory item) was $300,000. Lease term is four years, beginning January 1 of Year 1. Lease payments are made each January 1, beginning at the lease commencement. Estimated useful life of the underlying asset is four years. Estimated residual value at the end of the lease is zero. Sales price of the underlying asset on January 1 of Year 1 is $345,000. Rex's implicit interest rate is 8% (known to Lee). Rex paid commission and legal fees in securing the lease of $3,750 on January 1 of Year 1. Rex expects to collect all payments from Lee. Required a. Compute the (1) annual lease payment calculated by the lessor and (2) the lease receivable to be capitalized by the lessor. Note: Round your answers to the nearest whole dollar. Note: Do not use negative signs with your answers 1. Lease Payment: 2. Lease Receivable: b. Provide the entries for the lessor on (1) January 1 and (2) December 31, of Year 1. Note: Round your answers to the nearest whole dollar. Date Jan. 1, Year 1 Account Name > > > > Dr. Cr. 0 0 0 0 x 0 0x 0 0 To record sale Jan. 1, Year 1 > > 0 0x 0 0 x To record lease payment Jan. 1, Year 1 0 0x 0 0x To record commission and legal fees Dec. 31, Year 1 0 0 x 0 0 x Check To record interest Cash C Initial Direct Cost Inventory Prepaid Maintenance Expense -ce Equipment Accumulated Depreciation Lease Receivable Right-of-Use Asset Accrued Legal Expense Che Deferred Lease Revenue un Deposit Liability Lease Incentive Payable Lease Liability Sales Revenue Interest Revenue Lease Revenue Cost of Goods Sold Amortization Expense Depreciation Expense Interest Expense to cou 1 an e doll D Lease Expense Loss on Lease Selling Expense To record lease payment > >