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Technoid Inc. sells computer systems. Technold leases computers to Lone Star Company on January 1, 2021. The manufacturing cost of the computers was 512 million.

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Technoid Inc. sells computer systems. Technold leases computers to Lone Star Company on January 1, 2021. The manufacturing cost of the computers was 512 million. This noncancelable lease had the following terms: Lease payments: $7777? semiannually, first payment at January 1, 2021; remaining payments at June 30 and December 31 each year through June 30, 2025 Lease term: five years (10 semiannual payments) There is a residual value of $500,000. And the lessee guaranteed a residual value of $600,000 Economic life of equipment: six years. Implicit interest rate and lessee's incremental borrowing rate: 5% semiannually. Fair value of the computers at January 1, 2021: $20 million Required: A Calculate the lease payment? Show computations. B. Make the journal entry by lessee on date of lease inception

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