Sage Hill Corporation recorded a right-of-use asset for $342,000 as a result of a finance lease on December 31, 2019. Sage Hill's incremental borrowing rate is 14%, and the implicit rate of the lessor was not known at the commencement of the lease. Sage Hill made the first lease payment of $60,651 on on December 31, 2019. The lease requires 9 annual payments. The equipment has a useful life of 9 years with no residual value. Prepare Sage Hill's December 31, 2020, entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record interest expense) December 31, 2020 (To record amortization of the right-of-use asset) Click if you would like to Show Work for this question: Open Show Work Assume that IBM leased equipment that was carried at a cost of $113,000 to Oriole Company. The term of the lease is 5 years December 31, 2019, with equal rental payments of $26,205 beginning December 31, 2019. The fair value of the equipment at commencement of the lease is $112,999. The equipment has a useful life of 5 years with no salvage value. The lease has an implicit interest rate of 8%, no bargain purchase option, and no transfer of title. Collectibility of lease payments for IBM is probable. Assume the sales-type lease was recorded at a present value of $112,999. Prepare IBM's December 31, 2020, entry to record the lease transaction with Oriole Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 5,275.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT Sage Hill Corporation recorded a right-of-use asset for $342,000 as a result of a finance lease on December 31, 2019. Sage Hill's incremental borrowing rate is 14%, and the implicit rate of the lessor was not known at the commencement of the lease. Sage Hill made the first lease payment of $60,651 on on December 31, 2019. The lease requires 9 annual payments. The equipment has a useful life of 9 years with no residual value. Prepare Sage Hill's December 31, 2020, entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record interest expense) December 31, 2020 (To record amortization of the right-of-use asset) Click if you would like to Show Work for this question: Open Show Work Assume that IBM leased equipment that was carried at a cost of $113,000 to Oriole Company. The term of the lease is 5 years December 31, 2019, with equal rental payments of $26,205 beginning December 31, 2019. The fair value of the equipment at commencement of the lease is $112,999. The equipment has a useful life of 5 years with no salvage value. The lease has an implicit interest rate of 8%, no bargain purchase option, and no transfer of title. Collectibility of lease payments for IBM is probable. Assume the sales-type lease was recorded at a present value of $112,999. Prepare IBM's December 31, 2020, entry to record the lease transaction with Oriole Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 5,275.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT