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Kingbird Dairy leases its milking equipment from Oriole Finance Company under the following lease terms. 1. The lease term is 10 years, non-cancelable, and requires equal rental payments of $32,100 due at the beginning of each year starting January 1,2025 2. The equipment has a faui value at the commencement of the lease (fanuary 1, 2025) of 5255,553 and a cost of 5267,000 on Oriole Finance's books. It alwo has an estimated economic life of 15 years and an expected residual value of $44,550, though Kinghird Dairy has guaranteed a residual value of $49,500 to Oriole Finance 3. The lease contains no renewal options, and the equipment reverts to Oriole Finarice upon termination of the lease. The equipment is not of a specialired une. 4. Kinghird Dairy's incremental borrowing rate is BX pef year. The implicit rate is also B\%. 5. Kingbird Dairy depreciates similar equipment that it owns on a straight-fine basish 6. Collectibility of the payments is probable Prepare the journal entries for the lessee and lessorat January 1.2025, and December 31, 2025 (the lessee's and lessor's yearend). Assume no reversing entries. (Credit occount titles are automatically indented when amount is entered. Do not indent manualiy. If no entry is required, select "No Entry" for the occount titles and enter Ofor the amounts. Round present value factor calculations to 5 decinal places, es. 1.25125 and final answers to 0 decimal places, eg. 5,250. List all debit entries before credit entries.)

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