On January $1,2025,$ Kingbird Co$.$ leased a building to Qloasom Inc. The ralevant information related to the lease is as follows.

The lease arrangament is for $10$ years. The building is expected to have a residual value at the end of the lase of $$2,500,000$

$[$unguarantesd$].$

The leased building has a coat of $$3,000,000$ and was purchased for cash on January $1,2025.$

The building is depreciated an a straight$-$line basis. Its estimated economic life is $50$ years with no salvage value

Lease payments are $$255,000$ per year and are made at the beginning of the year.

Blosom has an incramental borrowing rate of $9\%,$ and the rate implicit in the lease is unlonown to Blossom.

Both the lesgar and the lesses ars an a cal endaryear basis.

Click hare to viaw factor tables.

$($For calculation purposes, use $5$ decimal places as displayed in the factor table provided.$)$

$($a$)$

Prepare the jaurnal antries that Kingbird should maks in $2025.($List all debit entries before credit entries. Credit account titles are

outomatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no

entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date