On July 1, 2023, Crane Corp., which uses IFRS, signs a 4-year, non-cancellable lease agreement to lease a equipment from Blossom Ltd. The following information concerns the lease agreement. 1. The equipment's fair value on July 1, 2023 is $259,000. 2. The agreement requires equal rental payments of $58,000.00 beginning on July 1, 2023. 3. The equipment has an estimated economic life of 5 years, with an unguaranteed residual value of $93,000. Crane Corp. depreciates similar equipment using the straight-line method, with no residual value. 4. The lease is non-renewable. At the termination of the lease, the equipment reverts to Blossom. 5. Crane's incremental borrowing rate is 6% per year. The lessor's implicit rate is not known by Crane Corp. 6. The yearly rental payment includes $6.543.59 of executory costs related to insurance on the equipment. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Your answer is partially correct. Prepare the journal entries on Crane Corp's books to record the payments and expenses related to this lease for the years 2023 and 2024 as well as any adjusting journal entries at its fiscal year ends of December 31, 2023 and 2024. Crane does not use reversing entries. (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 O for the amounts. Round answers to 2 decimal places, e.g. 5,125.76. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Dec. 31, 2023 Depreciation Expense Dec. 31,2023 Accumulated Depreciation-Right-of-Use Asset (To record depreciation) Interest Expense Debit 51800 12452.62 June 30, 2024 Lease Liability (To record interest) Insurance Expense Prepaid insurance 327184 June 30, 2024 Insurance Expence 327184 Prepaid Insurance July 1.2024 Interest Expense 12452.62 Insurance Expense 3271.76 Prepaid Insurance 3271.84 Lease Liability Cash Dec. 31, 2024 Depreciation Expense Dec. 31, 2024 Accumulated Depreciation-Right-of-Use Asset (To record depreciation) Interest Expense Lease Llability (To record interest) 6470 10112.39