Sunland Leasing Company agrees to lease equipment to Coronado Corporation on January $1,2020.$ The following information relates to the lease agreement.

$1.$ The term of the lease is $7$ years with no renewal option, and the machinery has an estimated economic life of $9$ years.

$2.$ The cost of the machinery is $$523,000,$ and the fair value of the asset on January $1,2020,$ is $$649,000.$

$3.$ At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $$45,000.$ Coronado estimates that the expected residual value at the end of the lease term will be $45,000.$ Coronado amortizes all of its leased equipment on a straight$-$line basis.

$4.$ The lease agreement requires equal annual rental payments, beginning on January $1,2020.$

$5.$ The collectibility of the lease payments is probable.

$6.$ Sunland desires a $10\%$ rate of return on its investments. Coronado$$s incremental borrowing rate is $11\%,$ and the lessor$$s implicit rate is unknown.

$($Assume the accounting period ends on December $31.)$

Click here to view factor tables.

$($a$)$

Discuss the nature of this lease for both the lessee and the lessor.

This is a finance lease for Coronado.

This is a sales$-$type lease for Sunland.

$($b$)$

Calculate the amount of the annual rental payment required. $($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and the final answer to $0$ decimal places e$.$g$.58,972.)$

Annual rental payment $$116,877\mathrm{.}20$

$($c$)$

compute the value of the lease liability to the les $

$($d$)$ Prepare the journal entries Sunland would make in $2020$ and $2021$ related to the lease arrangement

$($e$)$ Prepare the journal en

Help with part c to e please.