Ivanhoe Corp. agreed to lease property from Swifty Corp. effective January 1, 2017, for an annual payment of $24,963, beginning January 1, 2017. The property is made up of land with a fair value of $108,000 and a two-storey office building with a fair value of $182,000 and a useful life of 23 years with no residual value. The implicit interest rate is 7.5%, the lease term is 23 years, and title to the property is transferred to Ivanhoe at the end of the lease term. Prepare the required entries made by Ivanhoe Corp. on January 1, 2017 and at its year end of December 31, 2017. Both Ivanhoe and Swifty use ASPE.

(To record inception of lease)

(To record first lease payment)

(To record accrued interest)

(To record depreciation)