Problem 21A-3 a-d (Part Level Submission) Gulver Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2017. Annual rental payments of $57.000 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 6%; Culver's incremental borrowing rate is 8%. Qulver is unaware of the rate being used by the lessor. At the end of the lease, Culver has the option to buy the equipment for $5,000, considerably below its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. Culver uses the straight line method of depreciation on similar owned equipment Click here to view factor tables Your answer is partially correct. Try again. Prepare the journal entries, that Culver should record on December 31, 2017. (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 for the amounts. Round present value factor calculations to 5 decimal places e.g. 1.25124 and the final answers to O decimal places, e.. SR,971.) Date Account Titles and Explanation Debit Credit December 31, 2017 Tright-of-Use Asset 1.2. 23752 T Lease Liability To record based asset and related liability) Problem 21A-3 a-d (Part Level Submission) Gulver Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2017. Annual rental payments of $57.000 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 6%; Culver's incremental borrowing rate is 8%. Qulver is unaware of the rate being used by the lessor. At the end of the lease, Culver has the option to buy the equipment for $5,000, considerably below its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. Culver uses the straight line method of depreciation on similar owned equipment Click here to view factor tables Your answer is partially correct. Try again. Prepare the journal entries, that Culver should record on December 31, 2017. (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 for the amounts. Round present value factor calculations to 5 decimal places e.g. 1.25124 and the final answers to O decimal places, e.. SR,971.) Date Account Titles and Explanation Debit Credit December 31, 2017 Tright-of-Use Asset 1.2. 23752 T Lease Liability To record based asset and related liability)