Crane Corporation leases a building to Bramble, Inc on January $1,2020.$ The following facts pertain to the lease agreement.

$1$ The lease term is $10$ years with equal annual rental payments of $$51,850$ at the end of cach year.

$2.$ Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the assct is not of a specialized n$$ture$.$

The building has a fair value of $$511,000,$ a book value to Crane of $$330,600,$ and a useful life of $15$ years.

$4.$ At the end of the lease term, Crane and Bramble expect the residual value of the building to be $$180,400,$ and this amount is guaranteed by Baden, Inc, a third party.

$5.$ Crane wants to earn a $5\%$ return on the lease, and collectability of the payments igprobsble

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$($b$)$

Assume the rate of return to amortize the net lease receivable to zero is $13\mathrm{.}24\%.$ Prepare the journal entries to record the entries for Crane for $2020$ and $2021.($Credit account titles are automatically indented when amount is entered. Do not indent manually. Record joumal entries in the order presented in the problem.$)$