NEED HELP ANSWERING THIS HW QUESTION

Crane Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2020. Annual rental payments of $43,000 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 7%; Crane's incremental borrowing rate is 9%. Crane is unaware of the rate being used by the lessor. At the end of the lease, Crane has the option to buy the equipment for $5,000, considerably below its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. Crane uses the straight-line method of depreciation on similar owned equipment.

a) the journal entries, that Crane should record on December 31, 2020.

Date Account Titles and Explanation Debit Credit December 31, 2022 2% (To record annual amortization on leased assets.) : 2% (To record annual payment on lease liability.) \fDate Account Titles and Explanation Debit Credit December 31, 2021 (To record amortization.) (To record annual payment on lease liability.)Date Account Titles and Explanation Debit Credit December 31, 2020 (To record leased asset and related liability.) (To record the first rental payment.)