Current Attempt in Progress On September 1, 2020, Wildhorse Corporation, which uses ASPE, signed a 5-year, non-cancellable lease for a piece of equipment. The terms of the lease called for Wildhorse to make annual payments of $12.960 at the beginning of each lease year, starting September 1. 2020. The equipment has an estimated useful life of 7 years and a $10,000 unguaranteed residual value and a fair value on September 1,2020, of $96,000. The equipment reverts back to the lessor at the end of the lease term. Wildhorse uses the straight-line method of depreciation for all of its plant assets, has a calendar year end, prepares adjusting journal entries at the end of the fiscal year, and does not use reversing entries. Wildhorse's incremental borrowing rate is 10%, and the lessor's implicit rate is unknown. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE December 31, 2021. (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 tities and enter for the amounts. Round answers to decimal places, eg. 5,275.) Date Credit Debit Account Titles and Explanation >