On January 1, 2023, Sandhill Inc. enters into a 5-year non-cancellable lease with Wilson Ltd. for equipment that has an estimated useful life of 5 years and a fair value of $1,994,000. Sandhill has an incremental borrowing rate of 8% and Wilson's implicit rate is 6%. Sandhill uses the straight-line depreciation method to depreciate assets. Sandhill will make annual lease payments on January 1 of each year (with the first payment due at the beginning of the lease) based on the fair value of the equipment. The lease agreement includes a guarantee that Sandhill will take over ownership of the equipment from Wilson for a final payment of $106,500. Both companies adhere to IFRS. Present the journal entries that Sandhill Inc, would record during the first year of the equipment lease. (Credit occount tities are automaticolly indented when the omount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter O for the omounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Round answers to Odecimal nlares ee 5.275.1