Question 3 View Policies Current Attempt in Progress Cullumber Companiese enter into a lease agreement on July 1.2021, for equipment. The following data are relevant to the case agreement: 1. The term of the no cancelableleases 4 year with no renewal option Payments of $855.212 we due on July 1 of each year. 2. The fair value of the equipment on July 1, 2021 $1,020,000. The equipment has an economic life of 6 years with no salvage value 3. Cullumber depreciates similar machinery it owns on the sum-of-the-years-digits basis. 4. The lessee pays all executory costs. 5. Cullumber's incremental borrowing rate is 10 per year. The lessee is aware that the lessor used an implicit rate of incomputing the lease payments Click here to view factor tables Indicate the type of base Cullumber Company has entered into and what accounting treatment is applicable Question Part Score Prepare the journal entries on Culumber's books that relate to the lease agreement for the following dates daccounter ton L2021 2 December 31, 2021 3. My 1.2022 4. December 31, 2022 Account Tities and Explanation Credit To record amortization (to record interest payment) Q Search or type URL C here to view actores Indicate the type of lease Cullumber Company has entered into and what accounting treatment is colicable Question Part Score Prepare the journal entries on C umber's books that relate to the lease agreement for the following dates: (Credit counte r automatically inde 1. July 1, 2021 2. December 31, 2021 2 1.2022 4 December 31, 2022 Date Account Titles and Explanation Debit Credit (To record amortization) (To record interest payment.) To record amortization) To record interest payment.) Question Part Score Save for Later Your rade has