Question: Python Company leased equipment from Hope Leasing on January 1 , 2 0 2 1 . Hope recently purchased the equipment at a cost of

Python Company leased equipment from Hope Leasing on January 1,2021. Hope recently purchased the equipment at a cost of $247,714. Other information: Lease term 3 yearsAnnual payments $ 89,000 on January 1 each yearLife of asset 3 yearsFair value of asset $ 247,714Implicit interest rate 8%Incremental rate 8% There is no expected residual value. Required:Prepare appropriate journal entries for Python for 2021. Assume straight-line depreciation and a December 31 year-end.

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