Crane Corp. is a manufacturer of truck trailers. On January 1, 2021, Crane Corp. leases 10 trailers to Bramble Company under a 5-year noncancelable lease agreement. The following information about the lease and the trailers is provided:

1.		Equal annual payments that are due on January 1 each year provide Crane Corp. with an 9% return on net investment.
2.		Titles to the trailers pass to Bramble at the end of the lease.
3.		The fair value of each trailer is $51,800. The cost of each trailer to Crane Corp. is $47,400. Each trailer has an expected useful life of nine years.
4.		Collectibility of the lease payments is probable.

Calculate the annual lease payment.

Compute the journal entries for Crane Corp.