On January 1, 2020, ABC Company leased machinery from Duncan Leasing Company. Duncan Leasing Company purchases the machinery and delivers it to the ABC Company on January 1, 2020. The expected economic life of the machinery is 4 years. ABC Company uses straight-line depreciation method for this machinery. According to the contract, ABC Company leases this machinery for 4 years starting from January 1, 2020 (The contract cannot be cancelled until the end of the fourth year). At the end of lease period the ownership title of machinery will be transferred to the ABC Company. The interest rate of this borrowing is 10%. The payments of the ABC Company will be as follows: Date Payment December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 TOTAL $ 10.000 $ 10.000 $ 10.000 $ 10.000 $ 40.000 Required: Prepare ABC Company's journal entries only for the first year (on Jan.1 and Dec.31). a) The entry at date of contract signed (Jan.1, 2020). b) The entries at end of the first year (Dec.31, 2020). c) Which company will record the depreciation? Show the entry