Assume that Bergamini Builders leases medical equipment from Saint Martin's Machine Company. (Click the icon to view the terms of the lease.) Requirement a. Determine the lessee's initial measurement of the lease liability and the right-of-use asset. Note that the initial measurement is the same for both operating and finance leases. Before completing the requirement, identify the present value of the lease payments. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculation. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answer to the nearest whole dollar.) The present value (PV) of the payments due under the lease is Now determine the balance of the right-of-use asset. (If an input field is not used in the table leave the input field empty: do not select a label or enter a zero.) [e Add: Subtract: Subtract: Initial measurement of the right-of-use asset Requirement b. Prepare all joumal entries necessary in order for Bergamini to record the transactions described in the facts provided. (Rocord debits first, then credits. Exclude explanations from any journal entries.) Begin by preparing the entry to record the $40,000 prepayment Bergamini made to the lessor on December 31,2021. Prepare the entry to record the incentive received by Bergamini from Saint Martin's to sign the lease on the lease commencement date, January 1,2022. \begin{tabular}{||l|l|l||} \hline \hline Account & \multicolumn{2}{|c||}{ January 1,2022 } \\ \hline \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \end{tabular} Prepare the entry that Bergamini will make on the lease commencement date, January 1, 2022. \begin{tabular}{||l|l|l|l||} \hline \hline Account & \multicolumn{3}{|l|}{ January 1,2022} \\ \hline \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} More info The lease term is for 7 years, and Bergamini must pay seven annual rentals of $40,000 beginning on January 1, 2022, of the current year and every January 1 afterward. The implicit rate in the lease is 3.5%. Bergamini prepaid Saint Martin's Machine Company the first payment of $40,000 on December 31,2021 (the date the lease is executed, which is prior to the lease commencement date). Bergamini received $15,000 from Saint Martin's Machine Company on the commencement date as an incentive to enter the lease agreement. Bergamini incurred initial direct costs of $5,000 that were originally recorded as prepaid initial direct costs on December 31, 2021. The equipment has no residual value