Problem 21-7 Crane Steel Company as lessee signed a lease agreement for equipment for 5 years, beginning December 31, 2017. Annual rental payments of $48,000 are to be made at the beginning of each lease year (December 31). The taxes, insurance, and the maintenance costs are the obligation of the lessee. The interest rate used by the lessor in setting the payment schedule is 9%; Cranes incremental borrowing rate is 11%. Crane is unaware of the rate being used by the lessor. At the end of the lease, Crane has the option to buy the equipment for $1, considerably below its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. Crane uses the straight-line method of depreciation on similar owned equipment. Prepare the journal entries, that should be recorded on December 31, 2017, by Crane. (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. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Prepare the journal entries, that should be recorded on December 31, 2018, by Crane. (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.) What amounts would appear on Cranes December 31, 2019, balance sheet relative to the lease arrangement?