Executable at end of year E 15-18 Bargain purchase option; lessor, direct financing lease LO15-5, LO15-6, LO15-7 Universal Leasing leases electronic equipment to a variety of businesses. The company's primary service is pro viding alternate financing by acquiring equipment and leasing it to customers under long-term direct financing leases. Universal carns interest under these arrangements at a 10% annual rate. The company leased an electronic typesetting machine it purchased for $30.900 to a local publisher, Desk top Inc., on December 31, 2015. The lease contract specified annual payments of $8,000 beginning January 1, 2016, the inception of the lease, and each December 31 through 2017 (three-year lease term). The publisher had the option to purchase the machine on December 30, 2018. the end of the lease term, for $12,000 when it was expected to have a residual value of $16.000 Required: 1. Show how Universal calculated the $8,000 annual lease payments for this direct financing lease. 2. Prepare an amortization schedule that describes the pattern of interest revenue for Universal Leasing over the lease term 3. Prepare the appropriate entries for Universal Leasing from the inception of the lease through the end of the lease term E 15-21 Terms of a lease agreement and related facts were