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Sarasota Equipment Leasing Company leased equipment to Sunland Healthcare System on January $1,2025,$ for a four$-$year period.

Equal annual payments under the lease are $$580000$ and are due on January $1$ of each year. The first payment was made on January $1,$

The implicit rate of interest contemplated by Sarasota Equipment Leasing and known to Sunland Healthcare is $8\%.$ Sunland's

incremental borrowing rate is $12\%.$ The cost of the equipment on Sarasota Equipment Leasing accounting records was $$780000.$

Assuming that the lease is appropriately recorded as an operating lease, on January $1$ of each year when the payment is received and

recorded by Sarasota Equipment Leasing Company as a debit to Cash, there would also be a:

credit to Lease Revenue of $$580000.$

credit to Accumulated Depreciation of $$580000.$

credit to Unearned Lease Revenue of $$580000.$

credit to Gain on Sale of Asset of $$132917.$