Foxx Corporation has leased a piece of equipment that has a useful life of 1 2 years. The terms of the lease are $43,000 per year for 12 years. Foxx currently is able to borrow money at a long-term interest rate of 1 5 percent. Round answers to the nearest dollar.)

1 . Calculate the present value of the lease.

2. Prepare the entry to record the lease agreement.

3. Prepare the entry to record depreciation of the equipment for the first year using the straight-line method. 4. Prepare the entries to record the lease payments for the first two years. E-1