A leased a machine on December 31, 2013, for a three-year period from B. The lease agreement calls for annual payments in the amount of $16,000 on December 31 of each year beginning on December 31, 2013. A has the option to purchase the machine on December 31, 2016, for $20,000 when its fair value is expected to be $30,000. This is a great deal for A. The machine's estimated useful life is expected to be five years with no residual value. A uses straight-line depreciation for this type of machinery. The appropriate interest rate for this lease is 12%. Please compute the amount to be recorded as a leased asset (liability) and make the entries for A for 2013 and 2014