On Jan $2,2025$ Albert Aloysius Zander Equipement, INC $($AAZEQ$)$ and Mole Excavating $($MOLEX$)$ entered into a four$-$year lease contract for an IVAN$-84$D$,$ which AAZEQ also offered for a sale at $$135,000.$ AAZEQ estimated that each machine could either be refurbished at the end of the lease or scrapped for parts, and that the Residual value of the equipement would be $$41,000$ in either case. The ecnomic life of the asset was six years. MOLEX incurred $$7,400$ in related direct costs for the lease. The lease required $$31,000$ payments at the end of the each year, commencing Dec $312025.$ MOLEX was familiar with the maret assumptions used by AAZEQ and its incremental borring rate was $8\mathrm{.}2\%.$

Supply the amounts requested on the answer sheet. If the ite, description is not applicable to the facts of the problem, put NA in the box.

Rate implicit in the lease

Lease receivable

Lessee Expense

Lessor Gross Profit

LL at the end of year $1$

RoU at the end of year $1$