Merrill Corporation, which uses ASPE, enters into a six-year lease of equipment on September 13, 2017 that requires six annual payments of $28,000 each, beginning September 13, 2017. In addition, Merrill guarantees the lessor a residual value of $17,000 at lease end. The equipment has a useful life of six years. Using tables, a financial calculator, or Excel functions, calculate the amount of the capital lease and prepare Merrill's September 13, 2017 journal entries, assuming an interest rate of 9%.