Blossom Corporation $("$Blossom$")$ manufactures equipment with an estimated economic life of $14$ years. On May $30,2023,$ Blossom

leases it to Gadget Corporation $("$Gadget$")$ for a period of $10$ years. Details of the lease are as follows:

$,$ Equipment has a fair value and cost at the inception of the lease: $$243,522.$

Guaranteed residual value: $$29,000.$

Annual lease payment, due at beginning of each year: $$31,750.$

Lease contains no renewal options and the equipment reverts to Blossom at the end of the lease.

Gadget's incremental interest rate, as well as implicit rate is $8\%.$

Gadget uses straight$-$line depreciation for similar equipment that it owns.

Blossom has determined that collectibility of lease payments is reasonably predictable and that no additional costs will be

incurred.