P15A-8 Escort, Inc.. acquired equipment under a capital lease that requires six annual lease payments of $12,000. The first payment is due when the lease begins, on January 1, 20X6. Future payments are due on January 1 of each year of the lease term. The interest rate in the lease is 16%. Required 1. Compute Escort's cost of the equipment. 2. Journalize the

(a) acquisition of the equipment and

(b) depreciation for 20X6.