The following facts are for a non-cancellable lease agreement between Sunland Corporation and Russell Corporation, a lessee:

Inception date		July 1, 2020
Annual lease payment due at the beginning of each year, starting July 1, 2020		$	20,615.82
Bargain purchase option price at end of lease term reasonably certain to be exercised by Russell		$	4,300.00
Lease term			5 years
Economic life of leased equipment			10 years
Lessors cost		$	51,000.00
Fair value of asset at July 1, 2020		$	90,200.00
Lessors implicit rate			9%
Lessees incremental borrowing rate			9%

The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties about costs that have not yet been incurred by the lessor. The lessee assumes responsibility for all executory costs. Both Russell and Sunland use IFRS 16. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE.

Calculate the amount of gross investment at the inception of the lease for Sunland Corporation, the lessor. (Round answers to 2 decimal places, e.g. 52.75.)

Gross investment

$Enter your answer in accordance to the question statement

List of Accounts

Calculate the amount of net investment at the inception of the lease for Sunland Corporation, the lessor. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75.)

Net investment

$Enter your answer in accordance to the question statement

List of Accounts

Prepare a lease amortization schedule using a computer spreadsheet for Sunland Corporation for the five-year lease term. (Round answers to 2 decimal places, e.g. 52.75.)

Sunland Leasing Corporation (Lessor) Lease Amortization Schedule
Date		Annual Lease Payment Plus PO		Interest on Net Investment		Net Investment Recovery		Balance of Net Investment
7/1/20								$
7/1/20		$				$
7/1/21				$
7/1/22
7/1/23
7/1/24
6/30/24
		$		$		$

List of Accounts

Prepare the journal entries to reflect the signing of the lease and to record the receipts and income related to this lease for the years 2020, 2021, and 2022. The lessors accounting period ends on December 31, and Sunland Corporation does not use reversing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.)

Date	Account Titles and Explanation	Debit	Credit
7/1/20
	(To record lease and cost of goods sold.)
7/1/2012/31/207/1/2112/31/217/1/2212/31/22
	(To record interest.)
7/1/2012/31/207/1/2112/31/217/1/2212/31/22
	(Collection of lease payment.)
7/1/2012/31/207/1/2112/31/217/1/2212/31/22
	(To record interest.)
7/1/2012/31/207/1/2112/31/217/1/2212/31/22
	(To record interest.)
7/1/2012/31/207/1/2112/31/217/1/2212/31/22
	(Collection of lease payment.)
7/1/2012/31/207/1/2112/31/217/1/2212/31/22
	(To record interest.)
7/1/2012/31/207/1/2112/31/217/1/2212/31/22
	(To record interest.)