a) On January 1, 2020, Blue Inc. sold computer equipment toLarkspur Co. The sales...

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Accounting

a) On January 1, 2020, Blue Inc. sold computer equipment toLarkspur Co. The sales price of the equipment was $511,000 and itscarrying amount is $396,000. Record any journal entries necessaryfor Blue from the sale of the computer equipment in 2020.
b) Use the information from part a. Assume that, on the same daythe sale occurred, Blue enters into an agreement to lease theequipment from Larkspur for 10 years with annual lease payments of$69,428.50 at the end of each year, beginning on December 31, 2020.If Blue has an incremental borrowing rate of 6% and the equipmenthas an economic useful life of 10 years, record any journal entriesnecessary for Blue from the sale and leaseback of computerequipment in 2020.
I really just need the answer for the entries for part B) Icannot figure it out, It is so confusing to me

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aJanuary 1 2020 When the asset is sold Blue Inc to LarkspurCoBank AC Dr 511000To Computer Equipment AC 396000To Gain on sale AC 115000bBut the transaction involved sale and lease back we See Answer

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In: Accountinga) On January 1, 2020, Blue Inc. sold computer equipment toLarkspur Co. The sales price...a) On January 1, 2020, Blue Inc. sold computer equipment toLarkspur Co. The sales price of the equipment was $511,000 and itscarrying amount is $396,000. Record any journal entries necessaryfor Blue from the sale of the computer equipment in 2020.b) Use the information from part a. Assume that, on the same daythe sale occurred, Blue enters into an agreement to lease theequipment from Larkspur for 10 years with annual lease payments of$69,428.50 at the end of each year, beginning on December 31, 2020.If Blue has an incremental borrowing rate of 6% and the equipmenthas an economic useful life of 10 years, record any journal entriesnecessary for Blue from the sale and leaseback of computerequipment in 2020.I really just need the answer for the entries for part B) Icannot figure it out, It is so confusing to me