Question $1(25$ marks$)$Assume that on $1$ January $2024,$ Moon Incorporation $($Moon$)$ signs a $10-$year noncancelablelease agreement to lease a storage building from Sun Corporation $($Sun$).$ Moon$$s financialyear end is $31$ December. The following information pertains to this lease agreement.

$1.$ The agreement requires equal rental payments of $$83,824$ beginning on $1$ January $2024.$

$2.$ The fair value of the building on $1$ January $2024$ is $$550,000.$

$3.$ The building has an estimated economic life of $12$ years, with an unguaranteed residualvalue of $$10,000.$ Moon depreciates similar buildings on the straight$-$line method.

$4.$ The lease is non$-$renewable. At the termination of the lease, the building reverts to Sun.

$5.$ Moon$$s incremental borrowing rate is $10\%$ per year. Sun$$s implicit rate $12\%$ is known byMoon.

$6.$ In addition to the annual rental payment, Moon is required to pay an annual insurance feeof $$3,088$ to Sun directly for the lease agreement. The annual insurance fee is paid on every$1$ January, starting from $1$ January $2024.$

Required: $($Note: all the journal entries must be rounded to the nearest dollar.$)$Prepare the following for Moon:

a$)$ present value of the lease payments. $(6$ marks$)$

b$)$ lease amortization schedule for the year $2024$ to $2028.(11$ marks$)$

c$)$ journal entries in Moon$$s book to reflect the signing of the lease agreement and to recordthe payments and expenses related to this lease for the year $2024.($Note: must show thedate for the journal entries prepared$)$