Terms of a lease agreement and related facts were:

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 $23,346, beginning January 1. Lessors implicit rate when calculating annual rental payments was 9%. Costs of $2,562 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: 1. The lease term is three years and the lessor paid $114,000 to acquire the asset (operating lease). 2. The lease term is six years and the lessor paid $114,000 to acquire the asset. Also assume that adjusting the lease receivable (net investment) by initial direct costs reduces the effective rate of interest to 8%. 3. The lease term is six years and the lessor paid $90,000 to acquire the asset.