The term of the non$-$cancelable lease is $3$ years with no renewal option. The cquipment has an eatimated economic life of $5$ years.

The falr value of the usset at January $1,2025,$ is $$78,000.$

The asset will revert to the lessor at the end of the lease term, at which ime the asset is expected to have areskdual value of $$12,000,$ none of which is guaranteed

The agreement requines equal annual rental payments of $$23,329.33$ to the lessor, beginning on January $1,2025.$

The lessed's Incremental borrowing rate is $5\%.$ The lessor's impliclt rate is $4\%$ and is unknown to tha lessee,

Bonita uses the straight$-$line depreciation method for all equipment

Click here to view factor tables.

Propane all of the joumal entries for the lessee for $2025$ to record the lease agreement, the lease payments and all expenses related to

Date

Right$-$of$-$Use Asset

Lease Liability

$($To record the lease$)$

$\frac{1}{125}$

Account Titles and Explanatlon

Lease Liability

$($To record the lease$)$

Lease Liability

$($To record lease liability$)$

Lease Expense

Lease Llablity

Deblt

Credit

$6352530$

$($To record lease liability$)$

Lease Expense

Lease Llablilty