On January 1, 2025, Crane Company leased equipment to Cullumber Corporation. The following information pertains to this lease. 1. The term of the non-cancelable lease is 6 years. At the end of the lease term, Cullumber has the option to purchase the equipment for $2,000, while the expected residual value at the end of the lease is $7,000. 2. Equal rental payments are due on January 1 of each year, beginning in 2025 . 3. The fair value of the equipment on January 1.2025, is $140.000, and its cost is $100.000. 4. The equipment has an economic life of 8 years. Cullumber depreciates all of its cquipment on a straight-fine basis. 5. Crane set the annual rental to ensure a 5% rate of return. Cullumber'sincremental borrowing rate is 6%, and the implicit rate of the lessor is unknown. 6. Collectiblity of lease payments by the lessor is probable. Prepare all the necessary journal entries for Cullumber for 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually, If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.3. 5,275, Record journal entries in the order presented in the