On January 1, 2020, Saba Company leaned equipment from National Corporation Lease payments $300,000, 20 years. The lease is non cancelable The following informaton portpos to the agreement 1. The fair value of the equipment on January 1, 2020 is $2,550.000 2. The estimated economic Me of the equipment was 25 years on January 1, 2020 with guarantood resahaal value of $75,000 3 The loase is non-renewable At the tormination of the lease, the equipment roverts to the lessor The lessor's implicit rate is 10% which is known to Sara Sitra's incremental borrowing rate is 12% (The PV of $1 for 20 penods at 10% 14 an ordinary annuity of $1 for 20 penods at 10% is 8.51356) 5 Sitra uses straight-line method for depreciation Instructions: AJ Compute the present value of minimum loase payments B) Prepare all necessary journal entries on the lessee's books for the year 2020 Apparel Leasing Company signs a lease agreement on January 1, 2021, to lease equipment to Oman Company. The form of the non-cancelable payments are required at the end of each year. The following information related to this agreement 1 The equipment has a cost and fair value of $28,500,000 to Apparel, an estimated useful tide of 10 years, and no residual value at the end of that time t lease rental is $4,324,818 2 Apparel Company desires to earn an 8% return on its investment nstructions: Prepare an amortization schedule for the lessor for 2021 and 2022. Prepare the journal entries on the lessor's books on January 1, 2021 and December 31, 2021