Current Attempt in Progress

Cullumber Leasing Company leases a new machine to Ivanhoe Corporation. The machine has a cost of $$65,000$ and fair value of $$91,500.$ Under the $3-$year, non$-$cancelable contract, Ivanhoe will receive title to the machine at the end of the lease. The machine has a $3-$year useful life and no residual value. The lease was signed on January $1,2025.$ Cullumber expects to earn an $8\%$ return on its investment, and this implicit rate is known by Ivanhoe. The annual rentals are payable on each December $31,$ beginning December $31,2025.$

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$($b$)$

Your answer is correct.

Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answers to $0$ decimal places e$.$g$.5,275.)$

$\backslash$table$[[$Rent Receipt$/$ Payment,Interest $(8\%)$ Revenue$/$ Expense,Reduction of Principal$],[$$$,0,$$$,0,$$$,0],[$;$,35505,,7320,,28185],[$;$,,,5065,,30440],[\text{'},35505,,2630,,32875]]$

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List of Accounts

Attempts: $1$ of $3$ used

$($c$)$

Prepare the journal entry at commencement of the lease for Cullumber. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date Account Titles and Explanation

Debit

Credi

$\frac{1}{1}\frac{?}{25}$