Sandhill Corp., which uses ASPE, leases a car to Jaimme DeLory on June 1, 2020. The term of the non-cancellable lease is 48 months. The following information is provided about the lease. 1. The lessee is given an option to purchase the automobile at the end of the lease term for $5,700. 2. The automobile's fair value on June 1, 2020, is $29,600. It is carried in Sandhill's inventory at $20,900. 3. The car has an economic life of seven years, with a $1,600 residual value at the end of that time. The car's estimated fair value is $10,700 after four years, $7,500 after five years, and $2,000 after six years. 4. Sandhill wants to earn a 12% rate of return (1% per month) on any financing transactions. 5. Jaimme DeLory represents a reasonable credit risk and no future costs are anticipated in relation to this lease. 6. The lease agreement calls for a $1,200 down payment on June 1, 2020, and 48 equal monthly payments on the first of each month, beginning June 1, 2020. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Determine the amount of the monthly lease payment using present value tables, a financial calculator, or Excel functions. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places, e.g. 52.75.) Monthly lease payment Prepare a lease amortization schedule for the 48-month lease term using Excel. (Hint: You may find the ROUND formula helpful for rounding in Excel.) (Round answers to 2 decimal places, e.g. 52.75.) Sandhill Corp. (Lessor) Lease Amortization Schedule Interest Net on Net Investment Investment Recovery Monthly Lease Payment Plus RV Month Balance of Net Investment 1 $ $ $ 2 3 4 5 6 7 8 9 10 11 12 15 16 17 18 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Prepare the entries that are required, if any, on December 31, 2020, Sandhill's fiscal year end. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 SHOW LIST OF ACCOUNTS How much income will Sandhill report on its 2020 statement of income relative to this lease? (Round answers to o decimal places, e.g. 5,275.) Sales Cost of goods sold Gross profit Interest income - lease What is the net investment in the lease to be reported on the December 31, 2020 statement of financial position? How much is reported in current assets? In non-current assets? (Round answers to 0 decimal places, e.g. 5,275.) Net investment in the lease to be reported as non-current assets $ Net investment in the lease to be reported as current assets $