On November $30,2018,$ Simmons Inc, leased warchouse equipment from Covington Corp. The lease agreement calls for Simmons to make semiannual lease payments of $$90,000$ over an $8-$year lease term, payable at November $30$ and May $31,$ with the first payment on November $30,2018.$ Simmons' incremental borrowing rate is $9\%,$ the same rate Covington used to calculate lease payment amounts. Covington purchased the warehouse equipenent at a cost of $$1,400,000$ on November $29,2018$ with an expected useful tife of $14$ years and no saivage value. The fiseal year for both Simmons and Covington ends on December $31.$ Required:

What are the present value of the lease payments on November $30,2018?$

b$.$ Starting on November $30,2018$ prepare all journal entries related to the lease that Simmons would have to make through December $31,2020.$

c$.$ Starting on November $30,2018$ prepare all journal entries related to the lease that Covington would have to make through December $31,2020.$

A$1.$ What amounts related to the lease would Simmons repert on its balanee sheet on December $31.2018,$ December $31,2019,$ and December $31,2020?$

e$.$ What amounts related to the lease would Simmons report on its income statement for the years ending December $31,2018,$ December $31,2019,$ and December $31,2020?$

f$.$ What amounts related to the lease would Covington report on its balanceshect on December $31.2018,$ December $31,2019,$ and December $31,2020?$

What amounts related to the lease would Covington report on its income statement for the years ending December $31,2018,$ December $31,2019,$ and December $31,2020?$