Exercise 21A-17 a-c On January 1, 2017, Shamrock Co. leased a building to Pharoah Inc. The relevant information related to the lease is as follows. 1. The lease arrangement is for 10 years. The building is expected to have a residual value at the end of the lease of $3,100,000 (unguaranteed) 2. The leased building has a cost of $3,600,000 and was purchased for cash on January 1, 2017. 3. The building is depreciated on a straight-line basis. Its estimated economic life is 50 years with no salvage value. 4. Lease payments are $285,000 per year and are made at the beginning of the year. 5, Pharoah has an incremental borrowing rate of 7%, and the rate implicit in the lease is unknown to Pharoah. 6. Both the lessor and the lessee are on a calendar-year basis. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Prepare the journal entries that Shamrock should make in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation (To record cost of the building) (To record receipt of lease payment) 12/31/17 (To record the recognition of the revenue each period) (To record depreciation expense on the leased asset) automatically ndented Prepare the journal entries that Pharoah should make in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275.) Round answers to o vedimai pl Date Account Titles and Explanation Debit Credit (To record the lease) (To record lease liability) 12/31/17 SHOW LIST OF ACCOUNTS If Pharoah paid $35,000 to a real estate broker on January 1, 2017, as a fee for finding the lessor, what is the initial measurement of the right-of-use asset? Right-of-use asset Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS Question Attempts: 0 of 12 used SAVE FOR LATER SUBMIT ANSWER SUBMIT