Problem 21-7 Concord Steel Company as lessee signed a lease agreement for equipment for 5 years, beginning December 31, 2017. Annual rental payments of $41,000 are to be made at the beginnin of the lessee. The interest rate used by the lessor in setting the payment schedule is 9%; Concord's incremental borrowing rate is 10%, concord is unaware of the rate being used by the lessor. At the end of the lease, its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. Concord uses the straight-line method of depreciation on similar owned equipment. g of each lease year (December 31). The taxes, insurance, and the maintenance costs are the obligation Concord has the option to buy the equipment for $1, considerably below bles Prepare the journal entries, that should be recorded on December 31, 2017, by Concord. (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 tities and enter O for the amounts. Round present value factor calculations to 5 decimal places, e.g.1.25124 and the final answer to O decimal places e.g. 58,971