Sunland Incorporated leases a piece of machinery to Marigold Company on January 1,2020, under the following terms 1. The lease is to be for 4 years with rental payments of $9,950 to be made at the beginning of each year, 2. The machinery has a fair value of $53,500, a book value of $40,000, and an economic life of 10 years. 3. At the end of the lease term, both parties expect the machinery to have a residual value of $20.000. To protect against a large loss. Sunland requests Marigold to guarantee $13,750 of the residual value. which Marigold agrees to do. 4. The lease does not transfer ownership at the end of the lesse term, does not have any bargain purchase options, and the asset is not of a specialized nature. 5. The implicit rate is 5%, which is known by Marigold 6. Collectibility of the payments is probable. Click here to view factor tables. Evaluate the criteria for classification of the lease, and describe the nature of the lease. For the lessee, it is a and for the lessor, it is a Prepare the journal entries for Marigold for the year 2020 . (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 tities and enter O for the amounts. Round present volue factor calculations to 5 decimal places, eg. 1.25124 and the final answer to 0 decimal places e.g. 5.275.) Prepare the journal entries for 5 unland tor the year 2020 . Credit occount titles are outomatically indented when the ampunt is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value foctor calculations to 5 decimal places, <1.25124 and the final answer to decimal ploces eg suppose marigold did not guarantee any amount of expected residuat value. prepare journal entries for year occount titles are dutomatically indented when is entered do indent manivaliy. if no entry required select enter amounts. round present walue foctor calculations es. places . residual sunland account automatically entered. manually. o value factor eg. e.>