4. ConAir, Inc. acquired a commuter plane in a capital lease transaction. The terms of the lease require ConAir to make 10 payments of $1 million at the BEGINNING 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 for year 6

(c) The lease payment for year 7.

(d) Depreciation expense for year 3.

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