Sage Hill Leasing Compary signs a lease agreement an January 1,2025, to lease electronic equipment to Oriole Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following informatian relates to this agreement. 1. Oriole has the option to purchase the equipment for $22,500 upan termination of the lease. It is nat reasonably certain that Oriole will exercise this option. 2. The equipment has a cost of $250,000 and fair value of $273,000 to Sage Hill Leasing. The useful ecanamic life is 2 years, with a residual value of $22,500. 3. Sage Hill Leasing desires to earn a return of 5% on its inwestment. 4. Collectibility of the payments by Sage Hill Leasing is probable. Click here to view factor tables. (a) Prepare the journal entries on the books of Sage Hill Leasing to record the payments received under the lease and to recagnize income for the years 2025 and 2026. (List all debit entries before credit entries. Credit account titles are outomatically indented when amount is entered. Do not indent manualk List all debit entries before credit entries. If no entry is required, select "No Entry" for the account tities and enter 0 for the amounts. For calculation purposes, use 5 decimal places as displayed in the factor tabie provided and round final answers to 0 decimal places es 5,275 . Sage Hill Leasing Compary signs a lease agreement an January 1,2025, to lease electronic equipment to Oriole Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following informatian relates to this agreement. 1. Oriole has the option to purchase the equipment for $22,500 upan termination of the lease. It is nat reasonably certain that Oriole will exercise this option. 2. The equipment has a cost of $250,000 and fair value of $273,000 to Sage Hill Leasing. The useful ecanamic life is 2 years, with a residual value of $22,500. 3. Sage Hill Leasing desires to earn a return of 5% on its inwestment. 4. Collectibility of the payments by Sage Hill Leasing is probable. Click here to view factor tables. (a) Prepare the journal entries on the books of Sage Hill Leasing to record the payments received under the lease and to recagnize income for the years 2025 and 2026. (List all debit entries before credit entries. Credit account titles are outomatically indented when amount is entered. Do not indent manualk List all debit entries before credit entries. If no entry is required, select "No Entry" for the account tities and enter 0 for the amounts. For calculation purposes, use 5 decimal places as displayed in the factor tabie provided and round final answers to 0 decimal places es 5,275