Python Company leased equipment from Hope Leasing on January 1, 2021. Hope recently purchased the equipment at a cost of $366,529.

Other information:
Lease term		5 years
Annual payments	$	85,000 on January 1 each year
Life of asset		5 years
Fair value of asset	$	366,529
Implicit interest rate		8%
Incremental rate		8%

There is no expected residual value. Required: Prepare appropriate journal entries for Python for 2021. Assume straight-line depreciation and a December 31 year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.)