On January $1,2024,$ Ghosh Industries leased a high$-$performance conveyer to Karrier Company for a four$-$year period ending December $31,2027,$ at which time possession of the leased asset will revert back to Ghosh.

The equipment cost Ghosh $$957,600$ and has an expected useful life of five years.

Ghosh expects the residual value at December $31,2027,$ will be $$301,600.$

Negotiations led to the lessee guaranteeing a $$341,600$ residual value.

Equal payments under the finance$/$sales$-$type lease are $$201,600$ and are due on December $31$ of each year with the first payment being made on December $31,2024.$

Karrier is aware that Ghosh used a $4\%$ interest rate when calculating lease payments.

Note: Use Excel, or a financial calculator.

Required:

Prepare the appropriate entries for Karrier on January $1,2024,$ to record the lease.

Prepare all appropriate entries for Karrier on December $31,2024,$ related to the lease.

Complete this question by entering your answers in the has below.

Prepare the appropriate entries for Karrier on January $1,2024,$ to record the lease.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your ans' nearest whole dollar.M