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P21-7 (LO2,4) (Lessor Computations and Entries, Sales-Iype Lease with Guaranteed Residual Value) Amirante Inc. manufactures...

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P21-7 (LO2,4) (Lessor Computations and Entries, Sales-Iype Lease with Guaranteed Residual Value) Amirante Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Chambers Medical Center for a period of 10 years. The normal selling price of the machine is $495,678, and its guaranteed residual value at the end of the non-cancelable lease term is estimated to be $15,000. The hospital will pay rents of $60,000 at the beginning of each year. Amirante incurred costs of $300,000 in manufacturing the machine and $14,000 in legal fees directly related to the signing of the lease. Amirante has determined that the collectibility of the lease payments is Amirante le and that the implicit interest rate is 5%. t rate is 5%, Instructions (a) Discuss the nature of this lease in relation to the lessor and compute the amount of each of the following items. (1) Lease receivable at commencement of the lease. (2) Sales price. (3) Cost of sales. (b) Prepare a 10-year lease amortization schedule for Amirante, the lessor. (c) Prepare all of the lessor's journal entries for the first yeai

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