Crane Corporation, which uses ASPE, enters into a 6-year lease of equipment on September 1, 2020, that requires 6 annual payments of $28,800 each, beginning September 1, 2020. The equipment has a useful life of seven years. Assume that a residual value of $17,800 is expected at the end of the lease, but that Crane does not guarantee the residual value. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Using (1) tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the capital lease. Prepare Cranes September 1, 2020 journal entry, assuming an interest rate of 12% and that Merrill also uses ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.)

Account Titles and Explanation	Debit	Credit
enter an account title to record inception of lease and first lease payment	enter a debit amount	enter a credit amount
enter an account title to record inception of lease and first lease payment	enter a debit amount	enter a credit amount
enter an account title to record inception of lease and first lease payment	enter a debit amount	enter a credit amount
(To record inception of lease and first lease payment.)