On January 1, 2017, Indigo Animation sold a truck to Peete Finance for $48,000 and immediately leased it back. The truck was carried on Indigo's books at $43,000. The term of the lease is 5 years, there is no bargain purchase option, and title does not transfer to Indigo at lease-end. The lease requires 5 equal rental payments of $11,707 at the end of each year (first payment on January 1, 2018). The appropriate rate of interest is 7 %, the truck has a useful life of 5 years, with no expected residual value at the end of the lease term. Prepare Indigo's 2017 journal entries assuming these new facts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,275.) Click here to view the factor table: Date Account Titles and Explanation Debit Credit 1/1/17 12/31/17