Sandhill Limited has signed a lease agreement with Wildhorse Corp. to lease equipment with an expected lifespan of eight years, no

estimated salvage value, and a cost to Wildhorse, the lessor of $$170,000.$ The terms of the lease are as follows:

The lease term begins on January $1,2022,$ and runs for $5$ years.

The lease requires payments of $$37,396$ at the beginning of each year starting January $1,2022.$

At the end of the lease term, the equipment is to be returned to the lessor.

Wildhorse' implied interest rate is $5\%,$ while Sandhill's borrowing rate is $6\%.$ Sandhill uses straight$-$line depreciation for

similar equipment. The year$-$end for both companies is December $31.$

Assuming that both companies follow ASPE:

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 present value of the minimum lease payments. $($Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answers

to $0$ decimal places, e$.$g$.5,275.)$

Present value $

Prepare the lease amortization schedule for Wildhorse using the effective interest method. $($Round answers to $0$ decimal places, e$.$g$.$

$5,275.)$

Prepare the $2022$ journal entries for Wildhorse Corporation, the lessor. $($List all debit entries before credit entries. Credit account titles

are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account

titles and enter $0$ for the amounts.$)$