you are an accoutant for Green giant grocers, which is a chain of grocery stores in the east coast. you have been asked to determine how much toher grocers in the market are leasing compared to owning. your approach is to use $2019$ and $202$Grouper Steel Company, as lessee, signed a lease agreement for equipment for $5$ years, beginning December $31,2025.$ Annual rental

payments of $$49,000$ are to be made at the beginning of each lease year $($December $31).$ The interest rate used by the lessor in setting

the payment schedule is $6\%$; Grouper's incremental borrowing rate is $8\%.$ Grouper is unaware of the rate being used by the lessor. At

the end of the lease, Grouper has the option to buy the equipment for $$5,000,$ considerably below its estimated fair value at that time.

The equipment has an estimated useful life of $7$ years, with no salvage value. Grouper uses the straight$-$line method of depreciation on

similar owned equipment.

Click here to view factor tables.

$($a$)$

Prepare the journal entries, that Grouper should record on December $31,2025.($Credit account titles are automatically indented

when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.

Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and the final answers to $0$ decimal places, e$.$g$.58,971.$ List all

debit entries before credit entries.$)$

$($To record the first rental payment.$)$

$($b$)$

Prepare the journal entries, that Grouper should record on December $31,2026.($Credit account tities are automatically indented

when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.

List all debit entries before credit entries.$)$

Prepare the journal entries, that Grouper should record on December $31,2027.($Credit account titles are automatically indented

when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.

Round answers to $0$ decimal places eg$.58,971.$ List all debit entries before credit entries.$)$

$($To record annual amortization on leased assets.$)$

$($To record annual payment on lease liability.$)$

What amounts would appear on Grouper's December $31,2027,$ balance sheet relative to the lease arrangement? $($Round answers

to $0$ decimal places, e$.$g$.58,971.)$