(Solved): thanks in advance Shamrock, Inc has entered an agreement to lease an old warchouse with a useful li ...

Shamrock, Inc has entered an agreement to lease an old warchouse with a useful life of 5 years and afair value of $$\$44,000$$ from United Corporation. The agreement stipulates the following - Rental payments of $$\$10,725$$ are to be made at the start of each year of the 5 -year lease. No residual value is expected at the end of the lease. - Shamrock must reimburse United each year for any real estate taxes incurred for the year, Last year, the cost of real estate taves was $$\$700$$, though these costs vary from year to year. - Shamrock must make a payment of $$\$500$$ with the rental payment each period to cover the insurance United has on the warehouse. - Shamrock paid legal fees of $$\$1,000$$ in executing the lease. Assuming Shamrock's incremental borrowing rate is $$11\%$$ and the rate implicit in the lease is unknown, prepare the journal entry to record the initial lease liability and right-of-use asset for Shamrock. (Credit account titles are automotically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5.275.)