HP Lap Do mo All-day Cu 11th Generation Intel CoreTM i3 processor See disclaimers on produc Problem 2) WickerWick Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2020. Annual rental payments of $40000 are to be made at the beginning of each lease year. The interest rate used by the lessor in setting the payment schedule is 6%; WickerWick's incremental borrowing rate Is 8%. WickerWick is unaware of the rate being used by the lessor. At the end of the lease, WickerWick has the option to buy the equipment for $5000, considerably below its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. WickerWick uses the straight-line method of depreciation on similar owned equipment. Instructions a. b. Prepare the journal entry or entries, with explanations, that WickerWick should record on December 31, 2021. Prepare the journal entry or entries, with explanations, that WickerWick should record on December 31