Sage Hill anters into an agraement with Traveler Inc. to lease a car on December 31, 2019. The following information ralates to this agrasmant. 1. The term of the non-cancelabla lease is 3 years with no renewal or bargain purchase option. The remaining economic life of the car is 3 years, and it is expected to have no residual valus at the end of the lease term. 2. The fair value of the car was $14,730.00 at commencement of the lease. 3. Annual payments are required to be made on Dacember 31 at the end of each yaar of the lase, bejinning December 31 , 2020. The first payment is to be of an amaunt of $5,452.82, with each payment increasing by a constant rate of 55 from the previous payment (i.2, the second payment will be $5,725.46 and the third and final payment will be $6,011.73 ). 4. Sage Hill' ineremental borrowing rate is 95E. The rate implicit in the lease is unionown. 5. Sage Hill uses straight-line depraciation for all similar cars. (a) Prepars Saze Hill' iournal antries for 2019,2020, and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposer, use 5 decimal places as displayed in the factor table provided and round final answers to 2 decimal places, eg. 5,275.25. Recond journal entries in the order presented in the problem.j Click hare to visw factor tables