need the red box answered please

On January 1, 2017, Monty Company contracts to lease equipment for S years, agreeing to make a payment of $158,442 at the beginning of each year, starting January 1, 2017, The leased equipment is to be capitalized at $650,000. The asset is to be amortized on a d and the implicit rate in the lease is 11%, which is known by Monty. Title to the equipment transfers to Monty at the end of the lease. The asset has an estimated useful life of 5 years and no residual value. g-balance basis, and the obligation is to be reduced on an effective-interest basis. Monty's incremental borrowing rate is 6% Your answer is correct. Prepare the journal entries that Monty should record on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g.1.25124 and the final answers to o decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit January 1, 2017 Right-of-Use Asset 650000 Lease Liability To record the lease.) Lease Liab lity 58442 To record lease payment.) Date Account Titles and Explanation Debit Credit December 31, 2017TAmertization Expanse Right of-Use Asset 260000 (To record amortization of the leased asset.) December 31, 201 Lesse Lisbility 5407 SHOW LIST OF ACCOUNTS SHOW SOLUTION HDW ANSWER Your answer is correct. repare the journal entry to record the lease payment of January 1, 2018, assuming reversing entries are not made not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the a 1.25124 and the final answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit January 1, 2018 Lease Liability 158442 158442 X] Your answer is incorrect. Try again. How would the value of the lease liability in part (b) change if Monty also agreed to pay the fixed annual insurance on the equipment of $2,000 at the same time as the rental payments? (Round ans to 0 decimal places, e.g. 5,275.) The lease liability click if you 3851 would like to Show Work for this question: Open Show Work LINK TO TEXT TO TEXT Question Attempts: 2 of 4 used SAVE FOR LATER