Swifty Corporation enters into a 7-year lease of equipment on December 31, 2016, which requires 7 annual payments of $41,100 each, beginning December 31, 2016. In addition, Swifty guarantees the lessor a residual value of $18,400 at the end of the lease. However, Swifty believes it is probable that the expected residual value at the end of the lease term will be $8,400. The equipment has a useful life of 7 years. Assume that for Lost Ark Company, the lessor, collectibility of lease payments is probable and the carrying amount of the equipment is $170,000. Prepare Lost Arks 2019 and 2020 journal entries, assuming the implicit rate of the lease is 10% and this is known to Swifty