Exercise $15-35($Static$)$ Lessor's initial direct costs; sales$-$type lease $[$L$015-3,15-7]$

The lease agreement and related facts indicate the following:

a$.$ Leased equipment had a retail cash selling price of $$300,000.$ Its useful life was five years with no residual value.

b$.$ The lease term was five years and the lessor paid $$265,000$ to acquire the equipment $($thus$,$ selling profit$).$

c$.$ Lessor's implicit rate when calculating annual lease payments was $8\%.$

d$.$ Annual lease payments beginning January $1,2024,$ the beginning of the lease, were $$69,571.$

e$.$ Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the

lessor were $$7,500.$

Required:

& $2.$ Prepare the appropriate entries for the lessor to record the lease and the initial payment at its commencement and any entry$($s$)$

necessary on December $31,2024,$ the fiscal year$-$end.

Note: Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a

transaction$/$event$,$ select $"$No journal entry required" in the first account field.