Tamarisk Corporation recorded a right-of-use asset for $259,700 as a result of a finance lease on...

Tamarisk Corporation recorded a right-of-use asset for $259,700 as a result of a finance lease on December 31, 2019. Tamarisk’s incremental borrowing rate is 11%, and the implicit rate of the lessor was not known at the commencement of the lease. Tamarisk made the first lease payment of $49,651 on on December 31, 2019. The lease requires 7 annual payments. The equipment has a useful life of 7 years with no residual value.

Prepare Tamarisk's December 31, 2020, entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 5,275.)

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