Terms of a lease agreement and related facts were as follows:

The lease asset had a retail cash selling price of $$114,000.$ Its useful life was six years with no residual value $($straight$-$line depreciation$).$

Annual lease payments at the beginning of each year were $$23,796,$ beginning January $1.$

Lessor$$s implicit rate when calculating annual rental payments was $10\%.$

Costs of $$2,356$ for legal fees for the lease execution were the responsibility of the lessor.

Required:

Prepare the appropriate entries for the lessor to record the lease, the initial payment at its beginning, and at the December $31$ fiscal year$-$end under each of the following three independent assumptions:

The lease term is three years and the lessor paid $$114,000$ to acquire the asset $($operating lease$).$

The lease term is six years and the lessor paid $$114,000$ to acquire the asset $($sales$-$type lease$).$ Also assume that adjusting the lease receivable $($net investment$)$ by initial direct costs reduces the effective rate of interest to $9\%.$

The lease term is six years and the lessor paid $$92,000$ to acquire the asset $($sales$-$type lease$).$