Paragraph $7$ On January $1,2022$ Parent purchased equipment for $$194,110$ and immediately leased the equipment to the Subsidiary on a $4-$year lease. The equipment lease payments of $$60,000$ are to be made annually every January $1$st beginning immediately, for a total of $4$ payments. The implicit interest rate is $12\%.$ The lease provides for an automatic transfer of title to the Sub at the end of the lease. The estimated useful life of the lease is $5$ years. The lease has been capitalized by both companies. The lease amortization schedule is as follows:

Date Payment Interest Gross Receivable Unearned Interest Carrying Value

$1/1/22$ $$240,000$ $$35,890$ $$204,110$

$1/1/22$ $$60,000$ $$180,000$ $$35,890$ $$144,110$

$1/1/23$ $$60,000$ $$17,293$ $$120,000$ $$18,597$ $$101,403$

$1/1/24$ $$60,000$ $$12,168$ $ $60,000$ $ $6,429$ $ $53,571$

$1/1/25$ $$60,000$ $ $6,429$ $ $-0-$ $ $-0-$ $ $-0-$

$8)$ Make all of the entries pertaining to intercompany leases