7. Luke Inc., the lessee, signs an 8-year lease agreement for equipment on January 1, 2020 that requires annual payments of $91.000, beginning immediately payable to John & Company. Luke Inc. understands that the equipment will have a residual value of $39.000 at the end of the lease term. Luke, Inc. is aware of the lessor's implicit rate of interest of 7%. Time value of money factors at 7% Future Value of 1 Present Value of 1 Present Value of Ordinary Annuity of 1 Present Value of Annuity Due of 1 7 years 1.60578 .62275 5.38929 5.76654 8 years 1.71819 .58201 5.97130 6.38929 Required Record the John & Co's journal entries on January 1, 2020, assuming that the lease is properly classified as a sales-type lease. The carrying value of the equipment is $585,000 at the commencement of the lease. Round your final answers to the nearest whole dollar