Record the lease at the beginning on January $1,20x5.$

Record the lease at the beginning on January $1,205.$

Record the depreciation expense as at the year end $31$st December, $205.$

Tartufo Corp. entered Into a $5-$year lease agreement with Gelato Inc. to lease equipment beginning on January $1,20$X$5.$ The IBR Is $9\%$

while the rate implicit in the lease is $8\%.$ Tartufo Corp. Is aware of the rate implicit in the lease.

Annual payments of $$61,500$ at the beginning of the year are requlred. The lease stlpulates a $$50,000$ residual value guarantee but

Tartufo Corp. expects a $$10,000$ payout will be required. Tartufo Corp. will return the equipment to Gelato Inc. at the end of the lease

term. $($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use approprlate factor$($s$)$ from the tables provided.$)$

Required:

Provide journal entries pertalning to this lease for Tartufo Corp. for the $205$ year. Tartufo Corp. uses straight$-$IIne depreclation for

similar assets, with a half$-$year of deprecation recorded in the year of acquisition. $($If no entry is required for a transaction$/$event$,$

select $"$No journal entry requlred" In the first account fleld. Round Intermedlate calculations and final answers to the nearest

whole dollar amount.$)$

Answer is not complete.