On January 1, Alfa Corp. leases a truck they have acquired to Romeo Corp. Alfa has calculated the lease payments to Romeo to be $ 33,500 per year for 4 years. The first payment was received when the lease was signed. Alfa acquired the truck for leasing purposes for $125,000. The rate implicit in the lease is 5%.

Required:

Prepare all journal entries for the 2020 year on Alfas books. Alfa follows IFRS.