Geiberger Corporation manufactures drones. On December 31, 2024, it leased to Althaus Company a drone that had cost $120,000 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires five equal annual rentals of $40,800 payable each December 31, beginning December 31, 2024. An interest rate of 8% is implicit in the lease agreement. Collectibility of the rentals is probable. Prepare Geiberger’s December 31, 2024, journal entries.