Pharoah Corporation, which uses ASPE, leased equipment it had specifically purchased at a cost of $ $185,200$ for Bonita, the lessee. The term of the lease is $15$ years, beginning January $1,2023,$ with equal rental payments of $$27,541$ at the beginning of each year.

Bonita pays all executory costs directly to third parties. The equipment's fair value at the lease's inception is $$185,200.$ The equipment has a useful life of $16$ years with no residual value. The lease has an implicit interest rate of $15\%,$ no bargain purchase option, and no transfer of title. Collectibility is reasonably assured, with no additional costs to be incurred by Pharoah.

Using $(1)$ tables, $(2)$ a financial calculator, or $(3)$ Excel functions, calculate the PV of the lease payments and prepare Pharoah's January $1,2023$ journal entries at the inception of the lease. $($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 factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to O decimal places, e$.$g$.5,275.)$

Account Titles Debit Credit

$\_\_\_\_\_$

$\_\_\_\_\_$

$\_\_\_\_\_$

$($to record inception of lease$)$

$\_\_\_\_\_$

$\_\_\_\_\_$

$($to record first lease payment$)$