Sheridan Company leases a building to Skysong, Inc. on January $1,2025.$ The following facts pertain to the lease agreement.

The lease term is $4$ years, with equal annual rental payments of $$4,848$ at the beginning of each year.

Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature.

The building has a fair value of $$19,900,$ a book value to Sheridan of $$13,930,$ and a useful life of $5$ years.

At the end of the lease term, Sheridan and Skysong expect there to be an unguaranteed residual value of $$3,480.$

Sheridan wants to earn a return of $8\%$ on the lease, and collectibility of the payments is probable. Skysong was unaware of the implicit rate used in the lease by Sheridan and has an incremental borrowing rate of $9\%.$

What is the lease receivable?

What is the present value of rental payments?

What is the lease liability$/$right of use asset?