Tartufo Corp. entered into a 7-year lease agreement with Gelato Inc. to lease equipment beginning on January 1, 20X5. The IBR is 7% while the rate implicit in the lease is 6%. Tartufo Corp. is aware of the rate implicit in the lease. Annual payments of $56,000 at the beginning of the year are required. The lease stipulates a $50,000 residual value guarantee but Tartufo Corp. expects a $12,000 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 appropriate factor(s) from the tables provided.) Required: Provide journal entries pertaining to this lease for Tartufo Corp. for the 20X5 year. Tartufo Corp. uses straight-line depreciation 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 required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar amount.)

Record the lease at the beginning on January 1, 20X5

Record the interest expense as at the year end 31st December, 20X5.

Record the depreciation expense as at the year end 31st December, 20X5.