On January 1, 2016, A Ltd. signed a 10-year non-cancelable lease agreement to lease a storage building from S Ltd. The following information pertains to this lease agreement. The agreement requires equal rental payments of $144,000 each January 1, starting 1 January 2016. The fair value of the building on 1 January 2016 is $880,000. The building has an estimated economic life of 12 years, with an unguaranteed residual value of $20,000. A Ltd. depreciates similar buildings on the straight-line method. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. A Ltd.'s incremental borrowing rate is 12% per year. The lessor's implicit rate is not known by A Ltd. The yearly rental payment includes $4,941 of cost related to taxes on the property. Required: Prepare the journal entries on the A Ltd's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2016 and 2017. A Ltd.'s year end is December 31