Flounder Steel Company, as lessee, signed a lease agreement for equipment for $5$ years, beginning December $31,2025.$

Annual rental payments of $$45,000$ are to be made at the beginning of each lease year $($December $31).$ The interest

rate used by the lessor in setting the payment schedule is $7\%$; Flounder's incremental borrowing rate is $9\%.$ Flounder is

unaware of the rate being used by the lessor. At the end of the lease, Flounder has the option to buy the equipment for

$$5,000,$ considerably below its estimated fair value at that time. The equipment has an estimated useful life of $7$ years,

with no salvage value. Flounder uses the straight$-$line method of depreciation on similar owned equipment.

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$($a$)$

Prepare the journal entries, that Flounder should record on December $31,2025.($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 present value factor

calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and the final answers to $0$ decimal places, e$.$g$.$

$58,971.$ List all debit entries before credit entries.$)$

List of Accounts

Attempts: $0$ of $5$ used

$($b$)$

Prepare Journal entries, that flounder should record on December $31,2026$

$($c$)$

Prepare Journal entries, that flounder should record on December $31,2027$

$($d$)$

Whats amounts would appear on flounders December $31,2027$ Balance sheet relative to lease arrangement?

PLEASE DO A$,$B$,$C$,$D ASAP NEED HELP

THANK YOU