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Kingbird Corporation recorded a right-of-use asset for $328,800 as a result of a finance lease on December 31,2024 . Kingbird's incremental borrowing rate is 10%,
Kingbird Corporation recorded a right-of-use asset for $328,800 as a result of a finance lease on December 31,2024 . Kingbird's incremental borrowing rate is 10%, and the implicit rate of the lessor was not known at the commencement of the lease. Kingbird made the first lease payment of $56,029 on December 31,2024 . The lease requires 8 annual payments. The equipment has a useful life of 8 years with no residual value. Prepare Kingbird's December 31, 2025, entries. (List all debit entries before credit entries. 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 answers to 0 decimal places e.g. 5,275.) [
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