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Carol Leasing Company signs an agreement on January $1,2025,$ to lease equipment to Wildhorse Company. The

following information relates to this agreement.

The term of the non$-$cancelable lease is $3$ years with no renewal option. The equipment has an estimated

economic life of $5$ years.

The fair value of the asset at January $1,2025,$ is $$87,000.$

The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a

residual value of $$11,000,$ none of which is guaranteed.

The agreement requires equal annual rental payments of $$26,756\mathrm{.}27$ to the lessor, beginning on January $1,$

The lessee's incremental borrowing rate is $5\%.$ The lessor's implicit rate is $4\%$ and is unknown to the lessee.

Wildhorse uses the straight$-$line depreciation method for all equipment.

Click here to view factor tables.

Prepare all of the journal entries for the lessee for $2025$ to record the lease agreement, the lease payments, and all

expenses related to this lease. Assume the lessee's annual accounting period ends on December $31.($For calculation

purposes, use $5$ decimal places as displayed in the factor table provided and round answers to $2$

decimal places, e$.$g$.5,265\mathrm{.}25.$ List all debit entries before credit entries. Credit account titles are

automatically indented when the amount is entered. Do not indent manually. Record journal entries

in the order presented in the problem. If no entry is required, select $"$No Entry" for the account titles

and enter $0$ for the amounts.$)$

$\text{'}$To record the lease$)$

$\text{'}$To record lease liability$)$

Lease Liability

Right$-$of$-$Use Asset

$\text{'}$To record lease liability$)$ please help find the answers marked in red!!