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Marin Company leased equipment from Costner Company, beginning on December 31,2024 . The lease term...

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Accounting

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Marin Company leased equipment from Costner Company, beginning on December 31,2024 . The lease term is 8 years and requites tequal rental proments of 556,394 at the beginning of each year of the fease, starting on the conmencement date (Docectiber 31 : 2024). The cquipment has a fair value at the cominencement date of the lease of $350,000. an estimated useful life of 8 years, and ino estirsted residual value. The appropriate interest rate is 8% Circheretovew fictor tables. Prepare Marin's2024 and 2025 journal entries, assuming Marin deprechatelsimilar equipment it owns ona straight-line basis. (Ust all debit entries before credit entries. Gredit account titles are outomatically indented when the amount is entered. Do not indent manuolly if no eniry birequind, select "No Entry" for the occount titles and enter O for the amounts. For calculation purposes, use 5 decimal places as displayed in the foctor table provided and round finat answers to 0 decimol ploces, es 5,275. Record journal entries in the onder presented in the problem.)

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