Cullumber Company, a machinery dealar, leased a machine to lvanhoe Corporation on January $1,2025.$ The lease is for an B$*$year

period and requirss equal annual payments of $$29,169$ at the beginning of each yaar. The first payment is racaived on January $1,2025.$

Cullumber had purchased the machine during $2024$ for $$109,000.$ Collectibility of lease payments by Cullumber is probable

Cullumber sat the annual rental to encure a $6\%$ rate of return. The machine has an economic life of $10$ years with no residual value and

revarts to Cullumber at the termination of the lease.

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$($a$)$

Your answer is corract.

Campute 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 lase receivable $

eTextbook and Medis

Llst of Accounts

Attempts $1$ of $3$ used

$($b$)$

Prspars all nacessary journal antries for Cullumber 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$\mathrm{.}8.5,275.$ Record journal entries in the ander presented in the problem.$)$

Date

Account Titles and Explanation

Debit

$($To record the lease$)$

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