On January $1,2025,$ Culver Inc. sold computer equipment to Splish Brothers Co$.$ The sales price of the equipment was $\backslash (\backslash$$ $528,000\backslash )$ and its carrying amount is $\backslash (\backslash$$ $404,000\backslash ).$ Record any journal entries necessary for Culver from the sale of the computer equipment in $2025.($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. Round answers to $2$ decimal places, e$.$g$.5,275\mathrm{.}25.)$

te Account Titles and Explanation

Debit

Credit

$125$

Gain on Disposal of Equipment Use the information from part a$.$ Assume that, on the same day the sale occurred, Culver enters into an agreement to lease the equipment from Splish Brothers for $10$ years with annual lease payments of $\backslash (\backslash$$ $68,378\mathrm{.}46\backslash )$ at the end of each year, beginning on December $31,2025.$ If Culver has an incremental borrowing rate of $\backslash (5\backslash \%\backslash )$ and the equipment has an economic useful life of $10$ years, record any journal entries necessary for Culver from the sale and leaseback of computer equipment in $2025.($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to $2$ decimal places, e$.$g$.5,275\mathrm{.}25.$ Record journal entries in the order presented in the problem. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date

Account Titles and Explanation

Debit

Cash

Notes Payable