Ivanhoe Company leases a building to Cullumber, Inc. on January $1,2025.$ The following facts pertain to the lease agreement.

The lease term is $4$ years, with equal annual rental payments of $$4,181$ at the beginning of each year.

Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature.

The building has a fair value of $$16,500,$ a book value to Ivanhoe of $$9,500,$ and a useful life of $5$ years.

At the end of the lease term, Ivanhoe and Cullumber expect there to be an unguaranteed residual value of $$2,450.$

Ivanhoe wants to earn a return of $9\%$ on the lease, and collectibility of the payments is probable. This rate is known by Cullumber.

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$($b$)$ Using the original facts of the lease, show the journal entries to be made by both Ivanhoe and Cullumber in $2025.($List all debit entries before credit entries. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answers to $0$ decimal places, e$.$g$.5,275.$ Credit account titles are automatically indented when the amount is entered. Do not indent manuallv.$)$