Problem 21-7 Sunland Steel Company as lessee signed a lease agreement for equipment for 5 years, beginning December at the beginning in setting the payment schedule is 9%; Sunland's incremental borrowing r Sunland has the option to buy the equipment for $1, considerably below no salvage value. Sunland uses the straight-line method of depreciation on similar owned of each lease year (December 31). The taxes, insurance, ane of the rate being used by the lessor. At the end of the lease 31, 2017. Annual rental payments of $49,000 are to be made The interest rate used by the lessor the maintenance costs are the obligation of the lessee. ate is 9%. Sunland is unaware of the rate being used by the its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with f equipment. Prepare the journal entries, that should be recorded on December 31, 2017, by Sunland. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round present value fector calculations to 5 decimal places, e.g.1.25124 and the final answer to O decimal places e.g.58,971 Date Account Titles and Explanation Debit Credit December 31, 2017 (To record the lease) To record the first payment.)