On January $1,2016,$ Pearson Company signed a lease agreement requiring six annual payments of $$60,000,$ beginning December $31,2016.$ The lease qualifies as a capital operating lease. Pearson's incremental borrowing rate was $9\%.$ Pearson Company uses the straight$-$line method to record depreciation on similar equipment. Estimated life is six years.

a$.$ prepare journal entry required January $1,2016.$

b$.$ prepare journal entries required December $31,2016.$

c$.$ prepare journal entries required December $31,2017.$