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Less-E Inc. leases a bulldozer from Less-O Inc on Jan 1st,2023 for four years between...

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Accounting

Less-E Inc. leases a bulldozer from Less-O Inc on Jan 1st,2023 for four years between Jan 1st,2023 and Dec 31st,2026.
Less-O's bulldozer has a book value of $1,000,000 on Janst,2023
Less-E agrees to make four equal payments to Less-O on the following days: Jan 1st,2023;Dec31st,2023; Dec 312024; and Dec31st,2025.
The useful life of the bulldozer is four years at the end of which the residual value is 150,000
Less-E's borrowing rate for similar transactions is 15%.
Let's assume this is a sales-type lease without profit for the lessor. That is, the present value of the lessee's payments equal the book value less the present value of any residual value returned to the lessor.
Record journal entries for both the lessor and the lessee.
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