Winning Leasing agrees to lease equipment to B&J Furniture on January 1, 2021. The following information relates to the lease agreement. 1. The term of the lease is 5 years with no renewal option, and the machinery has an estimated economic life of 5 years. 2. The cost of the machinery is $880,000. The fair value of the asset on January 1, 2021 is $880,000. 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $90,000. The expected residual value would be $35,000 at the end of the lease term. Jariar uses straight-line depreciation for all long-term assets. - 4. Winning's implicit rate is 4%, and B&J's incremental borrowing rate is 4%. Required: 4 1. Calculate the amount of the annual rental payment required (assuming payments are to be made in advance). 2. Prepare the journal entries to record the lease for B&J (the lessee) for the year 2021.44 3. Prepare the journal entries to record the lease for Winning (the lessor) for the year 2021