create a journal entry/entries

On December 31, 2020, the Cify or Oliver leases a lorge plece of construction equipment with a 25 year life for flve years to use during a construction project After the contract ends, the city must return the equipment to the lessor but has not quaranteed any residual value. The lease requites flve annual payments of $40,000 per year beginning immediately. Oliver uses its own incremental borrowing rate of 10 percent per year because it does not know the implicit interest rate the lessor is charging. The present value of a $40,000 annulty due for five years at an annual interest rate of 10 percent is $166.795 (rounded). Prepare the joumal entry/entries required for government-wide financial statements for this lease contract for 2020 and 2021