On January 1, 2021, Navdeep Corp. (lessor) entered into a non-cancellable lease agreement with Simran Corp. (lessee) for machinery which was carried in Navdeep's accounting records at $2,265,000 (fair value of $2,400,000). Minimum lease payments under the lease agreement, which expires on December 31, 2030, total $3,550,000. Payments of $355,000 are due each January 1. The first payment was made on January 1, 2021 when the lease agreement was finalized. The interest rate of 10% which was stipulated in the lease agreement is the implicit rate set by the lessor. The effective interest method is being used. Simran expects the machine to have a ten-year life with no residual value and be depreciated on a straight-line basis. Collectability of the rentals is reasonably assured, and there are no important uncertainties surrounding the costs yet to be incurred by Navdeep. Both entities are small private corporations that follow ASPE Ignoring income taxes, what should be the expenses incurred by Simran from this lease for the calendar 2021? What journal entries should be recorded by Simran Corp. on January 1, 2021? What journal entries should be recorded by Navdeep Corp. on January 1, 2021