On January 1, 2024, QuickStream Communications leased telephone equipment from Digium, Inc. Digiums cash selling price for the equipment is $1,306,578.

*The lease agreement specifies six annual payments of $300,000 beginning December 31, 2024, and on each December 31 thereafter through 2029.

*The six-year lease is equal to the estimated useful life of the equipment.

*The contract specifies that lease payments for each year will increase by the higher of (a) the increase in the Consumer Price Index for the preceding year or (b) 3%.

*The CPI at the beginning of the lease is 120. Digium routinely leases equipment to other firms.

*The interest rate in these lease arrangements is 10%.

Required: (please show calculations)

Prepare the appropriate journal entries for QuickStream to record the lease at its beginning date of January 1, 2024.