Vongsiharath City's water utility fund enters into a ten-year lease for water treatment equipment on the first day of its fiscal year with a present value of $1,342,016 with annual payments of $200,000 (first beginning in one year), and an implied interest rate of 8%. The expected useful life of the equipment is 13 years. Record the following journal entries:

1. Record the initial lease.

2. On the last day of the fiscal year, record the first annual payment of $200,000 on the lease.

3. On the last day of the fiscal year, record the amortization of the asset.