Crane Corporation, which uses ASPE, enters into a 6-year lease of equipment on September 1, 2020, that requires 6 annual payments of $19,000 each, beginning September 1, 2020. In addition, Crane guarantees the lessor a residual value of $8,000 at lease end. The equipment has a useful life of seven years.

Using (1) tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the capital lease and prepare Crane's September 1, 2020 journal entry assuming an interest rate of 11%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Equipment under Lease Obligations under Lease Cash 19,000 (To record inception of lease and first lease payment.) Assume instead that Crane follows IFRS and that the amount expected to be paid under the residual value guarantee is $10,000. Calculate the amount of the right-of-use asset and prepare Cranes September 2020 journal entry, assuming an interest rate of 11%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit (To record inception of lease and first lease payment.)