On January 1, 2019, ABC Inc, leased equipment by signing a 6-year noncancelable lease that is appropriately classified as a finance lease. Information regarding the lease is as follows: Fair value of leased equipment Annual lease payments due at the beginning of each year, starting Jan. 1, 2019 Expected residual value at end of lease term Lessee guaranteed residual value at end of lease term Economic life of leased equipment Lessor's implicit rate in the lease (not known by ABC) ABC's incremental borrowing rate $ 803,003 $ 150,000 $ 20,000 $ 30,000 8 years 6% 7% Present value factors for n = 6 are as follows: present value of single sum present value of ordinary annuity present value of annuity due i = 6% 0.70496 4.91732 5.21236 i = 7% 0.66634 4.76654 5.10020 REQUIRED (round amounts in journal entries to the nearest dollar): (1) Prepare ABC's (the lessee) appropriate journal entries at Jan. 1, 2019. (2) Prepare ABC's appropriate journal entries at Dec. 31, 2019 (the end of the fiscal year)