Comet Company (lessor) leases equipment to Ajax that cost $165,000 and retails for $190,787.40. Lease terms: 5-year term beginning Jan 1, 2014, non-cancellable, annual rental charge due on Jan 1, 2014 and on Dec 31 for the remaining four payments. The estimated life of equipment is 5 years, residual value at the end of 5 years will be zero. Lessor and lessee interest rates equal to 9%. Comet determines that Ajax's annual lease payment will be $45,000. Required: a) How did Comet calculate the annual lease payment? b) Record Comet's journal entries at the inception of the lease and for the first lease payment; c) Record Comet's journal entry for the lease on December 31, 2014