Apparel Leasing Company signs a lease agreement on January 1, 2021, to lease equipment to Oman Company The term of the non-cancelable lease is 8 years, and payments are required at the end of each year. The following information related to this agreement 1. The equipment has a cost and fair value of $9,500,000 to Apparel, an estimated useful life of 10 years, and no residual value at the end of that time. Annual lease rental is $1,441,606 2. Apparel Company desires to earn an 8% return on its investment Instructions: A) Prepare an amortization schedule for the lessor for 2021 and 2022 B) Prepare the journal entries on the lessor's bodks on January 1, 2021 and December 31, 2021
