On January $1,$ Lessee Inc. signs a three$-$year non$-$cancelable agreement to lease equipment $($no residual value$)$ from Lessor Inc. The lessee accounts for the lease as a finance lease, which requires three lease payments of $$34,972$ each, payable January $1$ and December $31$ of this year, and December $31$ of next year. The lessor$$s im$-$ plicit rate is $5\%,$ which is known to the lessee, resulting in the recording of a right$-$of$-$use asset and lease liability of $$100,000($PV$(0\mathrm{.}05,3,34972,0,1))$ at the inception of the lease. As a result, the lessee recorded the following entries in the current year $($amounts rounded$).$