Use the following information for Problems #$10-12($Based on problem #$21-8)$:

$($Lessee Entries for Capital Lease$)$ On January $1,2012,$ Crowther Company $($Lessee$)$ contracts to lease equipment for $5$

years, agreeing to make annual payments of $$65,950$ at the beginning of each year, starting January $1,2012.$ The

asset is to be depreciated on a double$-$declining$-$balance basis. The lease will be amortized using the effective interest

method. Crowther's incremental borrowing rate is $12\%,$ and the Lessor's implicit rate in the lease is $10\%,$ which is

known by Crowther. Title to the equipment transfers to CrowthLr when the lease expires. The asset has an estimated

useful life of $5$ years and no residual value. $($Round all numbers to the nearest dollar.$)$

$10]$ Compute the present value of the minimum lease payments $($Note: Use P$.$V$.$ of Annuity Due$)$:

$11])$ Prepare the journal entries that should be recorded on January $1,2012,$ by Crowther Company $($note: two JE's

needed $-$ one to record the lease and the other to record the first payment $)$:

$12]$ Prepare the journal entries to record the accrual of interest at December ${31}^{st}$ and also to record depreciation for

the year $2012($two journals needed$)$