On January 1, 2024, QuickStream Communications leased telephone equipment from Digium, Incorporated Digiums cash selling price for the equipment is $1,611,446.

• The lease agreement specifies six annual payments of $370,000 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) 2%.
• The CPI at the beginning of the lease is 100. Digium routinely leases equipment to other firms.
• The interest rate in these lease arrangements is 10%.

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