Required 1.

• Record the lease. (January 01, 2024)
• Record the payment of initial direct costs. (January 01, 2024)
• Record the cash received. (January 01, 2024)

Exercise 15-34 (Algo) Lessor's initial direct costs; sales-type lease [LO15-2, 15-7] Terms of a lease agreement and related facts were as follows: a. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $4,344 b. The retail cash selling price of the leased asset was $512,000. Its useful life was three years with no residual value. c. The lease term was three years and the lessor paid $512,000 to acquire the asset. d. Annual lease payments at the beginning of each year were $188,754. e. Lessor's implicit rate when calculating annual rental payments was 11%. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1 ) Required: 1. Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1,2024. 2. Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs. 3. Record any entry(s) necessary on December 31, 2024, the fiscal year-end. Note: Prepare any entry(s) recorded by the lessor at December 31, 2024, its fiscal year-end. Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs. Note: Enter percentage answer as a whole percent. Journal entry worksheet Note: Enter debits before credits