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. The lease requires ten (10) annual payments, with the first lease payment of $50,000 due at the inception of the lease on January 1, 2020. The lease includes a $2,00 bargain purchase option and an estimated residual value of $10,000. The equipment has an estimated useful life of 12 years. 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.