On January 2, year 1, Nesbitt Co. leased equipment from Grant, Inc. Lease payments are exist100,000, Payable annually every December 31 for twenty years. Title to equipment passes to Nesbitt at the end of the lease term. The lease is non-cancelable. The equipment has a exist750,000 carrying amount on Grant's books. Its estimated economic life was 25 years on January 2, year 1. The rate implicit in the lease, which is known to Nesbitt, is 10%. Nesbitt incremental borrowing rate is 12%. Nesbit uses the straight-line method of depreciation. The rounded present value factors of an ordinary annuity for twenty years are as follows: Prepare the necessary journal entries to be recorded by Nesbitt for 1. Entering into the lease on January 2, year1. 2. Making the lease payment on December 31, year1. 3. Expenses related to the lease for the year ended December 31, year 1