Mario Bros. Company leased a van with a list price of $$50,000$ for use in its plumbing business on January $1,2019.$ Due to substantial modifications made to the van for use in its business, Mario Bros. Co$.$ determines that this lease should be accounted for as a finance lease.

The lease has a $10-$year term, requiring a down payment of $$10,000$ on January $1,2019$ and $9$ equal annual lease payments beginning January $1,2020.$ After the final payment, the lease will be paid in full. The lease has an implicit interest rate of $4\%.$

What is the entry at lease inception?

What is the amount of each annual payment?

What is the total interest expense associated with the lease?

What is the journal entry to record the lease payment on January $1,2022?$

What is the annual entry to amortize the right$-$of$-$use asset?