with all work showed

Problem 2 (15 points): On Januar sale-leaseback agreement wb $30,000 and then lease it bac on Lessee's books of $15,000 1. The sale date will Points): On January 1, 2018, Lessee Corp and Lessor Company greement whereby Lessee is going to sell a milling machine to Lessot i tease it back from them for a 3 year period. The machine had sh v ate s books of $15,000 (original cost was $25.000). Other information is as follows e sale date will be January 1, 2018. The first payment is sade at that time The non-cancelable lease term will be 3 years and require annual payments of $10,39). 3. The estimated remaining useful life of the machine is 3 years. The annual rent payments provide Lessor with a 4% rate of return on the financing arrangement. 3. Lessee depreciates its machines on a straight-line basis. Required: Prepare the necessary journal entries that would be made in 2018 (1/4/18 and 12/31/18) by the Lessee. Assume that all cash flows occur on 1/1. Note: You do na need an amortization schedule. Only provide the necessary journal entries for the two dates for the Lessee only.) Problem 2 (15 points): On Januar sale-leaseback agreement wb $30,000 and then lease it bac on Lessee's books of $15,000 1. The sale date will Points): On January 1, 2018, Lessee Corp and Lessor Company greement whereby Lessee is going to sell a milling machine to Lessot i tease it back from them for a 3 year period. The machine had sh v ate s books of $15,000 (original cost was $25.000). Other information is as follows e sale date will be January 1, 2018. The first payment is sade at that time The non-cancelable lease term will be 3 years and require annual payments of $10,39). 3. The estimated remaining useful life of the machine is 3 years. The annual rent payments provide Lessor with a 4% rate of return on the financing arrangement. 3. Lessee depreciates its machines on a straight-line basis. Required: Prepare the necessary journal entries that would be made in 2018 (1/4/18 and 12/31/18) by the Lessee. Assume that all cash flows occur on 1/1. Note: You do na need an amortization schedule. Only provide the necessary journal entries for the two dates for the Lessee only.)