On June $30,2025,$ Clark, Incorporated leased warehouse equipment from Woodward, Incorporated. The lease agreement calls for Clark to make semiannual lease payments of $\backslash (\backslash$$ $700,000\backslash )$ over a $2-$year lease term $($also the asset's useful life$),$ payable each June $30$ and December $31,$ with the first payment on June $30,2025.$ Clark's incremental borrowing rate is $\backslash (10\backslash \%\backslash ),$ the same rate Woodward used to calculate lease payment amounts. Woodward manufactured the equipment at a cost of $\backslash (\backslash$$ $2,220,000\backslash ).$

$1.$ Determine the price at which Woodward is $\text{'}$se lling' the equipment $($present value of the lease payments$)$ using Excel's PV function.

$2.$ Prepare the journal entry to record the sale by Woodward Incorporated on June $30,2025.$

Prepare the journal entry to record the sale by Woodward Incorporated on June $30,2025.$

Prepare an amortization schedule for the $2-$year term of the lease.

Prepare the journal entry to record the first lease payment received by Woodward Incorporated on June $30,2025.$

Prepare the journal entry to record the second lease payment received by Woodward Incorporated on Decem ber $31,2025.$

$47$

$486.$ Indicate the amounts related to the lease reported on the year$-$end balance sheets and income statements. $($Ignore taxes$)$ PLEASE SHOW EXCEL FORMULAS USED