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 $$29,017$ at the beginning of each year. The first payment is received on January $1,2025.$ Crane had purchased the machine during $2024$ for $$119,000.$ 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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Compute the amount of the lease receivable. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answer to $0$ decimal places e$\mathrm{.}8.5,275.)$

Amount of the lease receivable

Prepare all necessary journal entries for Crane for $2025.($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Round answers to $0$ decimal places e$.$g$.5,275.$ Record journal entries in the order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credit

$1/1/25$

$$

$$

$$

$$

$$

$$

$($To record the lease$)$

$$

$($To record the first lease payment$)$