Scape Corporation manufactures telephony equipment. Scape leased equipment to User, Incorporated on January $1,2024.$ Scape produced the equipment at a cost of $$5,000,000.$

Lease description:

Quarterly rental payments $$522,064$ at beginning of each period

Lease term $5$ years $(20$ quarters$)$

No residual value; no BPO

Economic life of equipment $5$ years

Implicit interest rate and lessee$$s incremental borrowing rate $12\%$

Fair value of asset $$8,000,000$

Required:

Prepare appropriate entries for both User and Scape from the beginning of the lease through the second rental payment on April $1,2024.$ Depreciation and amortization are recorded at the end of each fiscal year $($December $31).$ Prepare appropriate entries for Scape from the beginning of the lease through the second rental payment on April $1,2024.$ Depreciation and amortization are recorded at the end of each fiscal year $($December $31).$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the firstPrepare appropriate entries for Scape from the beginning of the lease through the second rental payment on April $1,2024.$ Depreciation and amortization are recorded at the end of each fiscal year $($December $31).$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts. account field. Round your answers to the nearest whole dollar amounts.