Crane Company, a machinery dealer, leased a machine to Cullumber Corporation on January $1,2025.$ The lease is for an $8-$year period

and requires equal annual payments of $$32,359$ at the beginning of each year. The first payment is received on January $1,2025.$ Crane

had purchased the machine during $2024$ for $$140,000.$ Collectibility of lease payments by Crane is probable Crane set the annual

rental to ensure a $6\%$ rate of return. The machine has an economic life of $10$ years with no residual value and reverts to Crane at the

termination of the lease.

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$($a$)$

$($b$)$

$($c$).$

$($d$)$

Suppose at the end of the lease term, Crane receives the asset and determines that it actually has a fair value of $$1,320$ instead of

the anticipated residual value of $$0.$ Record the entry to recognize the receipt of the asset for Crane at the end of the lease term.

$($List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually.

Round answers to $0$ decimal places eg$.5,275.$ If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

$\frac{1}{1}\frac{?}{25}$