Show Attempt History Current Attempt in Progress Ivanhoe Company, as lessee, enters into a lease agreement on July 1, 2021, for equipment. The following data are relevant to the lease agreement: 1. The term of the noncancelable lease is 4 years, with no renewal option. Payments of $866,369 are due on July 1 of each year. 2. The fair value of the equipment on July 1, 2021 is $3,140,000. The equipment has an economic life of 6 years with no salvage value. 3. Ivanhoe depreciates similar machinery it owns on the sum-of-the-years'-digits basis. 4. The lessee pays all executory costs. . 5. Ivanhoe's incremental borrowing rate is 10% per year. The lessee is aware that the lessor used an implicit rate of 7% in computing the lease payments. Click here to factor tablo (a) Your answer is correct. Indicate the type of lease Ivanhoe Company has entered into and what accounting treatment is applicable. Finance Lease e Textbook and Media (b) Prepare the journal entries on Ivanhoe's books that relate to the lease agreement for the following dates: (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to 0 decimal places eg. 5,250.) 1. July 1, 2021 2. December 31, 2021. 3. July 1, 2022 4. December 31, 2022