1. (5 points) M leased a machine on 12-31-19. The machines estimated useful life is 4 years. The noncancelable lease required M to make 7 monthly lease payments of $24,000 with the first monthly lease payment occurring on 12-31-19. Ms incremental borrowing rate on 12-31-19 is 4.5%. At the end of the lease, M will return the machine to the lessor. M uses the straight-line depreciation method (no residual value). M prepares AJEs every month. Using current GAAP rules, determine if this is a short-term or a long-term lease; IF its a long-term lease, then determine if this is a long-term finance lease OR a long-term operating lease, prepare the lease-related entries M should make on:

1. 12-31-19
2. 01-31-20
3. 02-29-20
4. 03-31-20
5. 04-30-20
6. 05-31-20
7. 06-30-20
8. 07-31-20