On December 31, 1989, a day when the available interest rate was \(12 \%\), Davis Company leased a machine for five years under a contract calling for a \(\$ 45,000\) annual lease payment at the end of each of the next five years, with the machine becoming the property of the lessee at the end of that period. The company decided to lease the machine. Prepare entries to record:

(a) the leasing of the machine,

(b) the amortization of the discount on the lease financing at December 31, 1990, and

(c) the December 31, 1990, payment under the lease.