Tamarisk Leasing Company signs an agreement on January $1,2020,$ to lease equipment to Cole Company. The following information relates to this agreement.

The term of the non$-$cancelable lease is $6$ years with no renewal option. The equipment has an estimated economic life of $6$ years.

The cost of the asset to the lessor is $$341,000.$ The fair value of the asset at January $1,2020,$ is $$341,000.$

The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $$20,010,$ none of which is guaranteed.

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

Collectibility of the lease payments by Tamarisk is probable.

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$($a$)$

Assuming the lessor desires a $10\%$ rate of return on its investment, calculate the amount of the annual rental payment required.

$($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and the final answer to $0$ decimal places e$.$g$.$

$($a$)$

$\backslash$times Your answer is incorrect.

Assuming the lessor desires a $10\%$ rate of return on its investment, calculate the amount of the annual rental payment required. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and the final answer to $0$ decimal places e$.$g$.5,275.)$

Amount of the annual rental payment

$

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$$ Also provide an amortization schedule and journal entries for the lessor to record for $2020$ and $2021$