Your answer is partially correct. Try again On January 1, 2017, Coronado Co. leased a building to Whispering Inc. The relevant information related to the lease is as follows. 1. The lease arrangement is for 10 years. 2. The leased building cost $4,445,000 and was purchased for cash on January 1, 2017. 3. The building is depreciated on a straight-line basis. Its estimated economic life is 50 years with no salvage value. 4. Lease payments are $255,000 per year and are made at the end of the year. 5. Property tax expense of $92,400 and insurance expense of $9,800 on the building were incurred by Coronado in the first year. Payment on these two items was made at the end of the year. 6. Both the lessor and the lessee are on a calendar-year basis. (a) Prepare the journal entries that Coronado Co. should make in 2017. (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.) Date Account Titles and Explanation Debit Credit 1/1/17 Buildings 4445000 Cash 4445000 12/31/17 Cash 255000 Leased Buildings 255000 To record receipt of lease payment.) Depreciation Expense 88900 Accumulated Depreciation-Building (To record depreciation.) Insurance Expense 88900 92400 Property Tax Expense 9800 Cash 102200 To record insurance and property tax.) (b) Prepare the journal entries that Whispering Inc. should make in 2017. (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.) Date Account Titles and Explanation 12/31/17 Leased Buildings Debit Credit 255000 Cash (c) If Coronado paid $31,800 to a real estate broker on January 1, 2017, as a fee for finding the lessee, how much should Coronado Co. report as an expense for this item in 2017? Expense should be reported 3180