Assume that on December 31, 2019, Skysong 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 $159,834 beginning on December 31, 2019.
2.		The fair value of the building on December 31, 2019 is $1,083,208.
3.		The building has an estimated economic life of 10 years, a guaranteed residual value of $49,600, and an expected residual value of $34,900. Skysong depreciates similar buildings on the straight-line method.
4.		The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor.
5.		Skysongs incremental borrowing rate is 6% per year. The lessors implicit rate is not known by Skysong. Prepare the journal entries on the lessees books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2019, 2020, and 2021. Skysongs fiscal year-end is December 31.