ent Attempt in Progress

sume that on January $1,2025,$ Bramble Corporation sells equipment to Carla Vista Finance Co$.$ for $$1,890,000$ and immediately ses back the equipment. The relevant information is as follows.

The equipment was carried Bramble's books at a value of $$1,670,000.$

The term of the non$-$cancelable lease is $3$ years; title will not transfer to Bramble, and the expected residual value at the end of the lease is $$125,250,$ all of which is unguaranteed.

The lease agreement requires equal rental payments of $$309,100$ at the beginning of each year.

The incremental borrowing rate for Bramble is $9\%.$ Bramble is aware that Carla Vista Finance set the annual rental to ensurea rate of return of $9\%.$

The equipment has a fair value of $$1,890,000$ on January $1,2025,$ an estimated economic life of $10$ years and will be depreciated using the straight$-$line method.

ck here to view factor tables.

epare the journal entries for both the lessee and the lessor for $2025$ to reflect the sale and leaseback agreement. $($Credit occount rities automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, ect $"$No Entry" for the account titles and enter $0$ for the amounts. Round present value factor calculations to $5$ decimal places, es$,125124$ d the final answer to $0$ decimal places e$.5\mathrm{.}275.)$journal entries for both the lessee and the lessor for $2025$ to reflect the sale and leaseback agreement. $($Credit account titles are outomotically indented when the amount is entered. Do not indent manually. Ust all debit entries before credit entries. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Round present value factor calculations to $5$ decimal places, eg$.125124$ and the final answer to $0$ decimal places es$.5,275.)$

$\backslash$table$[[$Date$,$Account Titles and Explanation,Debit,Credit$],[,$Bramble Corparation $($Seller$-$Lessee$),,],[,$Sales Reverue,$220000,],[,,,220000],[,,,],[,($To record sale$),,],[,,,],[,($To record lease$),,],[,-($To record first lease payment$),,],[,,,$