Lamplighter Company, the lessor, agrees to lease equipment to Tilson Company, the lessee, beginning January 1, 2019. The lease terms, provisions, and related events are as follows:
• The lease is noncancelable and has a term of 8 years.
• The annual rentals are $32,000, payable at the end of each year.
• Tilson agrees to pay all executory costs directly to a third party.
• The interest rate implicit in the lease is 14%.
• The cost of the equipment to the Lamplighter is $110,000. The fair value of the equipment is $155,000.
• Lamplighter incurs no material initial direct costs.
• Lamplighter expects to collect all lease payments.
• Lamplighter estimates that the fair value at the end of the lease term will be $20,000 and that the economic life of the equipment is 9 years. This value is not guaranteed by the Tilson.

Required:
1. Calculate the selling price implied by the lease.
2. Next Level State why this is a sales-type lease.
3. Prepare a table summarizing the lease receipts and interest income earned by the lessor for this sales-type lease.
4. Prepare an accretion schedule for the unguaranteed residual asset.
5. Prepare journal entries for Lamplighter for the years 2019, 2020, and 2021.
6. Next Level Prepare partial balance sheets for Lamplighter for December 31, 2019, and December 31, 2020, showing how the accounts should be disclosed. Use the change in present value approach to classify the lease receivable as current and noncurrent.