Monty Ltd. signed an agreement to lease a piece of equipment for 3 years on January 1, 2020. The lease terms called for payments of $11,500 per year, to be paid at the beginning of each year. At the end of the lease, the equipment is to be returned to the lessor. The equipment had an estimated useful life of 25 years. The lessor set the annual rental payments to earn an overall return of 8% per year. The equipment cost the lessor $94,000 to manufacture. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Prepare the journal entries on the books of Monty Ltd. on January 1, 2020 and on December 31, 2020, assuming adjusting journal entries are done annually and that Monty follows ASPE