5 med 15 exercise

Federated Fabrications leased a tooling machine on January 1, 2024, for a three-year period ending December 31,2026 - The lease agreement specified annual payments of $32.000 beginning with the first payment at the beginning of the lease, and each December 31 through 2025 - The company had the option to purchase the machine on December 30,2026 , for $41,000 when its fair value was expected to be $56,000, a sufficient difference that exercise seems reasonably certain. - The machine's estimated useful life was six years with no salvage value. Federated was aware that the lessor's implicit rate of return was 10%. Note: Use tables, Excel, or a financiol colculator. (EV of \$1. PV of \$1. FVA of S1. PVA of \$1. EVAD of S1 and PVAD of \$1) Required: 1. Calculate the amount Federated should record as a nght-of-use asset and lease liability for this finance lease. 2. Prepare an amortization schedule that describes the pattern of interest expense for Federated over the lease term. 3. Prepare the appropriate entries for Federated from the beginning of the lease through the end of the lease term. Complete this question by entering your answers in the tabs below. Calculate the amount federated should record as a right-of-use asset and lease liablity for this finance lease. Note: Round your intermediate and final answer to the nearest whole dollar amount. Calculate the amount Federated should record as a right-of-use asset and lease liability for this finance lease. Note: Round your internediate and final answer to the nearest whole dollar amount. Prepare an amortization schedule that describes the pattern of interest expense for Federated over the lease term. Note: Round your intermediate and final answers to the nearest whole dollar amount. Enter all amounts as positive values. Prepare the appropriate entries for Federated from the beginning of the lease through the end of the Note: Round your intermediate and final answers to the nearest whole dollar amount. If no entry is select "No journal entry required" in the first account field