Assume that IBM leased equipment that was carried at a cost of $$145,000$ to Crane Company. The term of the lease is $6$ years beginning Dec $31,2024,$ with equal rental payments of $$30,600$ beginning Dec $31,2024.$ The fair value of the equipment at commencement of the lease is $$149,623.$ The equipment has a useful life of $6$ years with no salvage value. The lease has an implicit interest rate of $9\%,$ no bargain purchase option, and no transfer of title. Collectibility of the lease payments for IBM is probable.

Prepare IBM's Dec $31,2024$ journal entries at commencement of the lease.

$($to record the lease$)$

$($to record receipt of lease payment$)$