Larkspur Leasing Company signs a lease agreement on January 1, 2025, to lease electronic equipment to Crane Company. The term on the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement. 1. 2. Crane has the option to purchase the equipment for $15,500 upon termination of the lease. It is not reasonably certain that Crane will exercise this option. The equipment has a cost of $110,000 and fair value of $158,500 to Larkspur Leasing. The useful economic life is 2 years, with a residual value of $15,500. 3. Larkspur Leasing desires to earn a return of 5% on its investment. 4. Collectibility of the payments by Larkspur Leasing is probable. Click here to view factor tables. (a) Your answer is partially correct. Prepare the journal entries on the books of Larkspur Leasing to record the payments received under the lease and to recognize income for the years 2025 and 2026. (List all debit entries before credit entries. Credit account titles are automatically Indented when Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the