Franklin Corporation enters into a finance lease for stamping equipment on January 1, 2020. Franklin has an incremental borrowing rate of 5% and the implicit rate of the lessor was not known at the commencement of the lease. Franklin made the first lease payment of $50,000 on January 1, 2020. The lease requires 10 annual payments and the equipment has an estimated useful life of 10 years with a $10,000 residual value. Prepare Franklin's 2020 journal entries related to this lease at the time of inception and at the end of the first year on December 31, 2020