Please answer question 4 below using the information provided.

Please write answer clearly, preferably typed if possible.

QUESTION 1 Information for Questions 1 - 4 Mathey Corporation (lessee) signed a 4-year lease with Zimmerman Co. for groundskeeping equipment. The lease term begins on January 1, 2019 and calls for 4 equal payments of $85,000 to be made at the beginning of each year. The fair value of the equipment was $320,000 at the inception of the lease. The machine is expected to have a 6-year useful life with no salvage value. Ownership of the equipment will transfer to Mathey at the end of the lease term. The following amortization schedule has been prepared to reflect the lease liability: Lease Liability Payment Interest Reduction Lease Liability Remaining $300,160 $ $ 1/1/2019 1/1/2020 1/1/2021 1/1/2022 85,000 85,000 85,000 85,000 - 19,364 13,457 7,018 $ 85,000 65,636 71,543 77,982 215,160 149,524 77,982 340,008 39,848 $ 300,160 QUESTION 4 Record the entries for Zimmerman Co., the lessor, at January 1, 2019, December 31, 2019, and January 1, 2020. Assume that the equipment had a cost of $275,000 and the fair value was $320,000 at inception. TTT Arial 3 (12pt) T- :: - E - S oos Path: p Words:0