Marin Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone that had cost $119,700 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires 5 equal annual rentals of $42,300 payable each December 31, beginning December 31, 2019. An interest rate of 12% is implicit in the lease agreement. Collectibility of the rentals is probable. Prepare Marins December 31, 2019, journal entries.