Question 7 Blossom Corporation, which uses ASPE, leased equipment it had specifically purchased at a cost of $175,200 for Crane, the lessee. The term of the lease is 6 years, beginning January 1, 2020, with equal rental payments of $35,831 at the beginning of each year. Crane pays all executory costs directly to third parties. The equipment's fair value at the lease's inception is $175,200. The equipment has a useful life of 7 years with no residual value. The lease has an implicit interest rate of 9%, no bargain purchase option, and no transfer of title. Collectibility is reasonably assured, with no additional costs to be incurred by Blossom. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Using tables, a financial calculator, or Excel functions, calculate the PV of the lease payments and prepare Blossom Corporation's January 1, 2020 journal entries at the inception of the unt titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Debit Credit Date Account Titles and Explanation Jan. 1 (To record inception of lease.) Jan. 1 (To record first lease payment.)