Vaughn Leasing Company agrees to lease equipment to Bramble Corporation on January 1, 2025. The following information relates t the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $507,000, and the fair value of the asset on January 1,2025 , is $690,000. 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual valim n $45,000, Bramble estimates that the expected residual value at the end of the lease term will be $45,000. Br artizes all of its leased equipment on a straight-line basis. 4. The lease agreement requires equal annual rental payments, beginning on January 1, 2025. 5. The collectibility of the lease payments is probable. 6. Vaughn desires a 10\% rate of return on its investments. Bramble's incremental borrowing rate is 11%, and the lessor's implicit rate is unknown. (Assume the accounting period ends on December 31.) Prepare the journal entries Vaughn would make in 2025 and 2026 related to the lease arrangement. (Credit account titles ore automatically indented when omount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter 0 for the amounts. Round answers to 0 decimal places eg. 58,972. Record joumal entries in the order presented in the problem. List all deblt entries before credit entries.) (To record lease payment.) Lease Receivable Interest Revenue Cash Lease Receivable 1/26 Lease Recelvable Interest Revenue