2. ConAir, Inc. acquired a second commuter plane in a capital lease transaction. The terms of the lease require ConAir to make 10 payments of $1 million at the END of each year. ConAirs usual borrowing rate is 7%. Conair uses straight line depreciation and the plane will have a zero residual value at the end of 10 years. Show the journal entries for the following:

(a) The initial acquisition of the plane.

(b) The interest expense and lease payment for year 6.

(c) Depreciation expense for year 3.