plish Inc. leased a new crane to Blossom Construction under a 5-year noncancelable contract starting January 1, 2017. Terms of the lease require payments of $35,200 each January 1, starting January 1, 2017. Splish will pay insurance, taxes, and maintenance charges on the crane, which has an estimated life of 12 years, a fair value of $220,800, and a cost to Splish of $220,800. The estimated fair value of the crane is expected to be $48,000 at the end of the lease term. No bargain-purchase or -renewal options are included in the contract. Both Splish and Blossom adjust and close books annually at December 31. Collectibility of the lease payments is reasonably certain, and no uncertainties exist relative to unreimbursable lessor costs. Blossoms incremental borrowing rate is 10%, and Splishs implicit interest rate of 9% is known to Blossom. (b) Prepare all the entries related to the lease contract and leased asset for the year 2017 for the lessee and lessor, assuming the following amounts. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (1) Insurance $530. (2) Property taxes $2,060. (3) Maintenance and repairs $660. (4) Straight-line depreciation and salvage value $13,800. Account Titles and Explanation Debit Credit Lessees Entries Lessors Entries (To record expenses.) (To record depreciation.) (To record revenue.)