please help ASAP

View Policies Current Attempt in Progress Flint Leasing Company agrees to lease equipment to Buffalo Corporation on January 1, 2020. The following information relates to the lease agreement 1. 2 3. The term of the lease is 7 years with no renewal option, and the machinery has an estimated econornic life of 9 years. The cost of the machinery is $565,000, and the fair value of the asset on January 1, 2020. is $752,000. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of 50000, Buffalo estimates that the expected residual value at the end of the lease term will be 50,000. Buffalo amortizes all of its leased equipment on a straight-line basis The lease agreement requires equal annual rental payments, beginning on January 1, 2020, The collectibility of the lease payments is probable. Flint desires a 10% rate of return on its investments. Buffalo's incremental borrowing rate is 11%, and the lessor simplicit rate is unknown 4 5 5 6. (Assume the accounting period ends on December 31) Click here to view factor tables Discuss the nature of this lease for both the lessee and the lessor 32F Clear b OT 6 - /5 Calculate the amount of the annual rental payment required. (Round present value factor calculations to 5 decimal places, es 1.25124 and the final answer to decimal placeseg. 58,972.) Annual rental payment $ e Textbook and Media List of Accounts Compute the value of the lease liability to the lessee. (Round present value factor calculations to 5 decimal places, eg 1.25124 and the final answer to O decimal placeses 58,972) $ Present value of minimum lease payments e Textbook and Media List of Accounts -/5 m E Prepare the journal entries Buffalo would make in 2020 and 2021 related to the lease arrangement. (Credit account tiesore automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to decimal places as 58.972. Record journal entries in the ander presented in the problem) Date Account Titles and Explanation Debit Credit (To record the lease) (To record lease payment.) e Tectbook and Media List of Accounts a Suppose Buffalo expects the residual value at the end of the lease term to be $40,000 but still guarantees a residual of $50.000. Compute the value of the lease liability at lease commencement. Lease liability $ e Textbook and Media List of Accounts Attempts: 0 of 3 used Sun An Save for Later ol