Tamarisk Company leased equipment from Costner Company, beginning on December 31, 2016. The lease term is 7 years and requires equal rental payments of $37,179 at the beginning of each year of the lease, starting on the commencement date (December 31, 2016). The equipment has a fair value at the commencement date of the lease of $220,000, an estimated useful life of 7 years, and no estimated residual value. The appropriate interest rate is 6%. Prepare Tamarisk’s 2016 and 2017 journal entries, assuming Tamarisk depreciates similar equipment it owns on a straight-line basis.