At the beginning of $2024,$ VHF Industries acquired a machine with a fair value of $$9,840,480$ by signing a five$-$year lease. The lease is payable in five annual payments of $$2\mathrm{.}4$ million at the end of each year.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

$1.$ What is the effective rate of interest implicit in the agreement?

$2-4.$ Prepare the lessee$$s journal entries at the beginning of the lease, the first lease payment at December $31,2024$ and the second lease payment at December $31,2025.$

$5.$ Suppose the fair value of the machine and the lessor$$s implicit rate were unknown at the time of the lease, but that the lessee$$s incremental borrowing rate of interest for notes of similar risk was $6\%.$ Prepare the lessee$$s entry at the beginning of the lease.