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Ayayai Equipment Leasing Company leased equipment to Wildhorse Healthcare System on January $1.2025,$ for a four$-$year period. Equal annual payments under the lease are $$450000$ and are due on January $1$ of each year. The first payment was made on January $1,2025.$ The implicit rate of interest contemplated by Ayayai Equipment Leasing and known to Wildhorse Healthcare is $8\%.$ Wildhorse's incremental borrowing rate is $11\%.$ The cost of the equipment on Ayayai Equipment Leasing accounting records was $$870000.$ Assuming that the lease is appropriately recorded as an operating lease and the remaining usefullife of the equipment is $6$ years, what is the journal entry to record depreciation on December $31,2025?$

$\backslash$table$[[,$PV Annuity Due,PV Ordinary Annuity,PV Single Sum$],[8\%,4$ periods,$3\mathrm{.}57710,3\mathrm{.}31213,0\mathrm{.}73503],[11\%,4$ periods,$3\mathrm{.}44371,3\mathrm{.}10245,0\mathrm{.}65873]]$

debit Depreciation Expense and Credit Accumulated Depreciation $$347727$ on Ayayai Equipment Leasing Company's books.

debit Depreciation Expense and Credit Accumulated Depreciation $$145000$ on Wildhorse Healthcare System's books.

debit Depreciation Expense and Credit Accumulated Depreciation of $$145000$ on Ayayai Equipment Leasing Company's books.

debit Amortization Expense and Credit Accumulated Depreciation $$347727$ on Wildhorse Healthcare System's books.

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