11b

Please , provide answer and calculations for part b

Tamarisk Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Carla Vista Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Carla Vista has the option to purchase the equipment for $19,000 upon termination of the lease. It is not reasonably certain that Carla Vista will exercise this option. 2. The equipment has a cost of $180,000 and fair value of $233,500 to Tamarisk Leasing. The useful economic life is 2 years, with a residual value of $19,000. 3. Tamarisk Leasing desires to earn a return of 5% on its investment. 4. Collectibility of the payments by Tamarisk Leasing is probable. Prepare the journal entries on the books of Tamarisk Leasing to reflect the payments received under the lease and to recognize income for the years 2020 and 2021. (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 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit 1/20 Lease Receivable 233,500 Cost of Goods Sold 162,767 Sales Revenue 216,267 Inventory 180,000 31/20 Cash 116,309.47 Lease Receivable 104,634.47 Interest Revenue 11,675 31/21 Cash 116,309.47 Lease Receivable 109,866.17 Interest Revenue 6,443.30