Swifty Manufacturing Ltd. agrees to lease equipment to Blue Spruce Lte. on July 15, 2023. Swifty follows ASPE and Blue Spruce is a public company following IFRS. The following information relates to the lease agreement: 1. The lease term is seven years, with no renewal option, and the equipment has an estimated economic life of nine years. 2. The equipment's cost is $423,000 and the asset's fair value on July 15,2023 , is $569,200, 3. At the end of the lease term, a payment to Swifty, the lessor, in the amount of $86,000 is expected to be payable by Blue Spruce, the lessee, under a residual value guarantee. Blue Spruce depreciates all of its equipment on a straight-line basis: 4. The lease agreement requires equal annual rental payments beginning on July 15, 2023. 5. Swifty usually sells its equipment to customers who buy the product outright, but Blue Spruce was unable to get acceptable financing for a cash purchase. Swifty's credief'lvestigation on Blue Spruce revealed that the company's financial situation was deteriorating. Because Blue Spruce had been a good customer many years ago, Swifty agreed to enter into this lease agreement, but used a higher-than-usual 10% interest rate in setting the lease payments. Blue Spruce is aware of this rate. 6. Swifty is uncertain about what additional costs it might have to incur in connection with this lease during the lease term, although Blue Spruce has agreed to pay all executory costs directly to third parties. 7. Swifty incurred legal costs of $2,500 in early July 2023 in finalizing the lease agreement. Using time value of money tables, a financial calculator, or Excel functions, calculate the amount of the annual rental payment that is required to obtain a return of 109 for Swifty. (Round factor values to 5 decimal places, es. 1.25124 and final answer to 0 decimal places, e.8. 5,275.) Annual rental payment Attempts: unlimited Using time value of money tables, a financial calculator, or Excel functions, calculate the amount of the annual rental payment that is required to obtain a return of 109 for Swifty. (Round factor values to 5 decimal places, es. 1.25124 and final answer to 0 decimal places, e.8. 5,275.) Annual rental payment Attempts: unlimited Prepare the journal entries that Blue Spruce would make in 2023 and 2024 related to the fease arrangement, assuming that that company has a December 31 fiscal year end and that it does not use reversing entries. (Llst oll debit entries before credit entries Credit occount titles are outomaticolly indented when the amount is enterod, Do not indent manually. If no entry is required, select 'No Entry for the occount tities ond enter O for the amounts. Roumd answers to 0 decimal places, es. 5.275.) From the information you have calculated and recorded, identify all balances related to this lease that would be feprited on Blue Spruce's December 31,2023 statement of financial position and statement of income, and where each amount would be reported. Prepare the journal entries that Swifty would inake in 2023 and 2024 related to the fease arrangement, assuming that thin company has a December 31 fiscal year end and does not use reversing entries. (thst all deblt entries before credit entries, Credit account titles are dutomatically indented when the amount ls entered, Do not lindent manusily. If no entry is required, select "Wo Entry" for the occount tities and enter O for the amounts. Round anwers to 0 decimal ploces, if 8.5,275. . From the information you have calculated and recorded, identify all balances related to this lease that would be reported on Swifty's December 31,2023 statement of financial position and statement of income, and where each amount would be reported. Swifty Manufacturing Ltd. agrees to lease equipment to Blue Spruce Lte. on July 15, 2023. Swifty follows ASPE and Blue Spruce is a public company following IFRS. The following information relates to the lease agreement: 1. The lease term is seven years, with no renewal option, and the equipment has an estimated economic life of nine years. 2. The equipment's cost is $423,000 and the asset's fair value on July 15,2023 , is $569,200, 3. At the end of the lease term, a payment to Swifty, the lessor, in the amount of $86,000 is expected to be payable by Blue Spruce, the lessee, under a residual value guarantee. Blue Spruce depreciates all of its equipment on a straight-line basis: 4. The lease agreement requires equal annual rental payments beginning on July 15, 2023. 5. Swifty usually sells its equipment to customers who buy the product outright, but Blue Spruce was unable to get acceptable financing for a cash purchase. Swifty's credief'lvestigation on Blue Spruce revealed that the company's financial situation was deteriorating. Because Blue Spruce had been a good customer many years ago, Swifty agreed to enter into this lease agreement, but used a higher-than-usual 10% interest rate in setting the lease payments. Blue Spruce is aware of this rate. 6. Swifty is uncertain about what additional costs it might have to incur in connection with this lease during the lease term, although Blue Spruce has agreed to pay all executory costs directly to third parties. 7. Swifty incurred legal costs of $2,500 in early July 2023 in finalizing the lease agreement. Using time value of money tables, a financial calculator, or Excel functions, calculate the amount of the annual rental payment that is required to obtain a return of 109 for Swifty. (Round factor values to 5 decimal places, es. 1.25124 and final answer to 0 decimal places, e.8. 5,275.) Annual rental payment Attempts: unlimited Using time value of money tables, a financial calculator, or Excel functions, calculate the amount of the annual rental payment that is required to obtain a return of 109 for Swifty. (Round factor values to 5 decimal places, es. 1.25124 and final answer to 0 decimal places, e.8. 5,275.) Annual rental payment Attempts: unlimited Prepare the journal entries that Blue Spruce would make in 2023 and 2024 related to the fease arrangement, assuming that that company has a December 31 fiscal year end and that it does not use reversing entries. (Llst oll debit entries before credit entries Credit occount titles are outomaticolly indented when the amount is enterod, Do not indent manually. If no entry is required, select 'No Entry for the occount tities ond enter O for the amounts. Roumd answers to 0 decimal places, es. 5.275.) From the information you have calculated and recorded, identify all balances related to this lease that would be feprited on Blue Spruce's December 31,2023 statement of financial position and statement of income, and where each amount would be reported. Prepare the journal entries that Swifty would inake in 2023 and 2024 related to the fease arrangement, assuming that thin company has a December 31 fiscal year end and does not use reversing entries. (thst all deblt entries before credit entries, Credit account titles are dutomatically indented when the amount ls entered, Do not lindent manusily. If no entry is required, select "Wo Entry" for the occount tities and enter O for the amounts. Round anwers to 0 decimal ploces, if 8.5,275. . From the information you have calculated and recorded, identify all balances related to this lease that would be reported on Swifty's December 31,2023 statement of financial position and statement of income, and where each amount would be reported