On January 1, 2022, Irwin Animation sold a truck to Peete Finance for €35,000 and immediately leased it back. The truck was carried on Irwin’s books at €28,000. The term of the lease is 3 years, there is no bargain purchase option, and title does not transfer to Irwin at lease-end. The lease requires 3 equal rental payments of €8,696 at the end of each year (first payment on January 1, 2023). The appropriate rate of interest is 6%, the truck has a useful life of 5 years, and the residual value at the end of the lease term is expected to be €14,000, none of which is guaranteed. Prepare Irwin’s 2022 journal entries.