Recording Sales$-$Type Lease Journal Entries$-$ Residual Value

to the lessor at the end of the lease term. Smith estimates a residual value of $$30,000$ at the end of the lease term. Smith is aware of the lessor's implicit rate of interest of $7\%.$

the equipment is $$450,000$ at the commencement of the lease.

Note: Round your answers to the nearest whole dollar.