Your answer is correct. On January 1, 2020, Cheyenne Inc. sold computer equipment to Sage Hill Co. The sales price of the equipment was $514,000 and its carrying amount is $415,000. Record any journal entries necessary for Cheyenne from the sale of the computer equipment in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (b) Date Account Titles and Explanation 1/1/20 Cash Gain on Disposal of Equipment Equipment Debit 514000 Credit 99000 415000 Your answer is partially correct. Use the information from part a. Assume that, on the same day the sale occurred, Cheyenne enters into an agreement to lease the equipment from Sage Hill for 10 years with annual lease payments of $66,565.39 at the end of each year, beginning on December 31, 2020. If Cheyenne has an incremental borrowing rate of 5% and the equipment has an economic useful life of 10 years, record any journal entries necessary for Cheyenne from the sale and leaseback of computer equipment in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.25. Record journal entries in the order presented in the problem.) Date Debit Credit Account Titles and Explanation 1/1/20 Leased Equipment Lease Llability 12/31/20 Lease Llability Interest Expense Cash 66565.39