Question: please answer number 2 BE21.10 (LO 2) Assume that IBM leased equipment that was carried at a cost of $120,000 to Swander Company. The term

please answer number 2

BE21.10 (LO 2) Assume that IBM leased equipment that was carried at a cost of $120,000 to Swander Company. The term of the lease is 6 years beginning December 31, 2019, with equal rental payments of $30,044 beginning December 31, 2019. The fair value of the equipment at commencement of the lease is $150,001. The equipment has a useful life of 6 years with no salvage value. The lease has an implicit in- terest rate of 8%, no bargain purchase option, and no transfer of title. Collectibility of lease payments for IBM is probable. Prepare Swander's December 31, 2019, journal entries at commencement of the lease. BE21.11 (LO2) Use the information for IBM from BE21.10. Assume the sales-type lease was recorded at a present value of $150.000. Prepare IBM's December 31, 2020, entry to record the lease transaction with Swander Company

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