On January 1, 20XX, Exon Company leases office space under a 21-year operating lease agreement. The contract calls for annual rent payments on December 31 of each year during the agreement. The payments are $19,500 the first year, increasing by $425 each year.The benefits expected by the lessee using this office space are expected to remain constant over the lease term.

1. Record Exon's rent payment at December 31, 2017 (the 5th annual rental payment) and at December 31, 2027 (the 15th annual rental payment).