please hurry$-$ On January $1,2024,$ Harry $($the Lesee$)$ Company leased equipment from Porter Company.

The lease had an non cancelable $4$ year term and required annual lease payments of $$72,000$ on January $1$ of each year, with the first payment due on $1/1/24.$ In addition, Harry also needs to make an annual payment of $$2,400($fixed$)$ to the lessor for executory costs $($property insurance and property tax$)$ on January $1$ of each year.

Harry guarantees a $$45,000$ residual value and estimates an expected residual value of $$37,800$ at the end of the lease term.

Harry incurred $$4,800$ in legal fees from the execution of the lease.

The estimated economic life of the equipment is $5$ years. Harry appropriately classifies the lease as a finance lease.

Harry$$s incremental borrowing rate is $6\%$ and the lessor$$s implicit interest rate is $5\%,$ which is known by Harry. Harry uses straight$-$line depreciation for its plant assets.

PV of $1$ for $4$ periods @ $5\%-0\mathrm{.}82270$

PV of $1$ for $4$ periods @ $6\%-0\mathrm{.}7209$

PV of an Ordinary Annuity of $1$ for $4$ periods @ $5\%-3\mathrm{.}54595$

PV of an Ordinary Annuity of $1$ for $4$ periods @ $6\%-3\mathrm{.}46511$

PV of an Annuity Due of $1$ for $4$ periods @ $5\%-3\mathrm{.}72325$

PV of an Annuity Due of $1$ for $4$ periods @ $6\%-3\mathrm{.}67301$

Required:

A$)$ Calculate the amount of lease liability and prepare a lease amortization schedule over the first $2$ years of the lease term for the lessee.

B$)$ Prepare journal entries for the lessee for $2024$ and $2025.$

C$)$ Show how to report the related assest and$/$or liabilities on the Lessee$$s Balance Sheet as of $12/31/25$