On January $1,2025,$ Sandhill Animation sold a truck to Wildhorse Finance for $$49,000$ and immediately leased it back. The truck was

carried on Sandhill's books at $$44,000.$ The term of the lease is $3$ years, there is no bargain purchase option, and title does not transfer

to Sandhill at lease$-$end. The lease requires three equal rental payments of $$15,000$ at the end of each year $($first payment on January $1.$

$.$ The appropriate rate of interest is $7\%,$ the truck has a useful life of $5$ years, and the residual value at the end of the lease term is

expected to be $$14,000,$ none of which is guaranteed.

Prepare Sandhill's $2025$ journal entries. $($List all debit entries before credit entries. Credit account titles are automatically indented when the

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. For

calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answers to $0$ decimal places, e$.$g$.5,265.$

Record journal entries in the order presented in the problem.$)$

Click here to view factor tables.

$($To record sale of truck$)$

$($To record lease liability$)$