Bird Corp leases equipment from Town company on Jan $1,2025.$ The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers $3$ years of the equipment's $8-$year useful life, and the present value of the lease payments is less than $90\%$ of the fair value of the asset. The annual lease payment is $$43,000$ at the beginning of each year, and Bird's incremental borrowing rate is $6\%,$ which is the same as the lessor's implicit rate.

Prepare all the necessary journal entrees for Falls Company $($the lessor$)$ for $2025,$ assuming the equipment is carried at a cost of $$264,000.$

$($to record the recognition of the revenue each peroid$)$

$($to record depreciation expense on the leased equipment$)$