The term of the non$-$cancelable lease is $6$ years with no renewal option. The equipment has an estimated economic life of $6$ years.

The cost of the asset to the lessor is $$291,000.$ The fair value of the asset at January $1,2025,$ is $$291,000.$

The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $$29,100,$ none of which is guaranteed.

The agreement requires equal annual rental payments, beginning on January $1,2025.$

Collectibility of the lease payments by Ivanhoe is probable.

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$($a$)$

$($b$)$

$($c$)$

Prepare all of the journal entries for the lessor for $2025$ and $2026$ to record the lease agreement, the receipt of lease payments, and the recognition of revenue. Assume the lessor's annual accounting period ends on December $31,$ and it does not use reversing entries. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent