$15-3($lessee version$)$ PLEASE EXPLAIN EACH ANSWER WITH FASB CODES!!

On December $31,2024,$ Ajax Inc. is the lessee in a lease contract for an equipment with a term of $5$

years, minimum annual payment of $$15,000,$ with the first payment due immediately. The equipment

has a useful life of $10$ years $($with no salvage value$)$ and the lease has no purchase option. Ajax classifies

the lease as an operating lease. Ajax's cost of capital is $8\%.$

Required:

a$.$ Prepare Ajax's journal entries on Dec $31,2024$ for the inception of lease and the first lease

payment. What is Ajax's $2024$ year$-$end balance for lease payable?

b$.$ Prepare Ajax's journal entry on Dec $31,2025$ for the second lease payment. What is Ajax's $2025$

year$-$end balance for lease payable?

c$.$ Prepare the journal entry on Dec $31,2025$ to recognize Ajax's amortization expense for the

right$-$of$-$use asset in $2025.$ What is Ajax's $2025$ year$-$end balance for right$-$of$-$use asset?