Assume that on December 31, 2019, Sage Hill Aerospace signs a 8-year, non-cancelable lease agreement to lease a hanger from Aero Field Management Company. The following information pertains to this lease agreement: 1. The agreement requires equal rental payments of $161,234 beginning on December 31, 2019. 2. The fair value of the building on December 31, 2019 is $1,092,423. 3. 4. 5. The building has an estimated economic life of 10 years, a guaranteed residual value of $49,600, and an expected residual value of $34,500. Sage Hill depreciates similar buildings on the straight-line method. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. Sage Hill's incremental borrowing rate is 6% per year. The lessor's implicit rate is not known by Sage Hill. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Date Account Titles and Explanation Debit Credit (To record the lease) (To record first lease payment) (To record amortization of the right-of-use asset) (To record second lease payment) (To record amortization of the right-of-use asset) (To record third lease payment)