Your answer is partially correct. Prepare the journal entry at commencement of the lease for Sharrer, assuming (1) Sharrer does not know Orlole's implicit rate Sharrer's incremental borrowing rate is 999), and (2) Sharrer incurs initial directs costs of $9.500 (Credit account titles are automatically indented when amount is entered. Do not Indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal placeses. 5.275) Date Account Titles and Explanation Debit Credit 1/1/20 Las Receivable I op een Lased Asset 87000 Cash 9500 eTextbook and Media List of Accounts @ Type here to search Question 9 of 12 0.89 / 1 View Policies Show Attempt History Current Attempt in Progress Orlole Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $87,000. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2020. Oriole expects to earn an 8% return on its investment and this implicit rate is known by Sharrer. The annual rentals are payable on each December 31, beginning December 31, 2020. Click here to view factor tables. (b) Your answer is correct Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places de 5,275 lpt Payment Interest Revenue/Expense Reduction of Principal Recelvable/Llability