View Policies Current Attempt in Progress Sunland Corp. agreed to lease property from Coronado Corp. effective January 1, 2020, for an annual payment of $22,532 beginning January 1, 2020. The property is made up of land with a fair value of $122,000 and a two-storey office building with a fair value of $148,000 and a useful life of 25 years with no residual value. The implicit interest rate is 7.5%, the lease term is 25 years, and title to the property will not be transferred to Sunland by the end of the lease term. Assume that there is also no bargain purchase option, but that the lease does meet other criteria to quality as a capital lease. Both Sunland and Coronado use ASPE. Prepare the required entries made by Sunland Corp. on January 1, 2020, and at its year end of December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to decimal places, eg. 5,275) Date Account Titles and Explanation Debit Credit (To record inception of lease.) Jan. 1 Question 5 of 5 -1 Date Account Titles and Explanation Debit Credit (To record inception of lease) Jan 1 (To record first lease payment) (To record interest.) (To record depreciation expense.)