Assume that on January 1, 2025. Elmer's Restaurants sells a computer system to Pharoah Finance Co. for $780,000 and immediately leases back the computer system. The relevant information is as follows. 1. The computer was carried on Elmer's books at a value of $700,000. 2. The term of the non-cancelable lease is 3 years; title will not transfer to Elmer's, and the expected residual value at the end of the lease is $550,000, all of which is unguaranteed. 3. The lease agreement requires equal rental payments of $115,490 at the beginning of each year: 4. The incremental borrowing rate for Elmer's is 5%. Elmer's is aware that Pharoah Finance set the annual rental to ensurea rate of return of 5%. 5. The computer has a fair value of $780,000 on January 1.2025 , and an estimated economic life of 10 years. Prepare the journal entries for both the lessee and the lessor for 2025 to record the sale and leaseback agreement (For calculation purposes, use 5 decimal places as displayed in the foctor table provided and round answers to 0 decimal places, es. 5,275, List ail debit entries before credit entries. Credit occount titles are outomatically indented when amount is entered. Do not indent manualiy, if no entry is required