At the beginning of 2018, VHF Industries acquired a machine with a fair value of $6,479,440 by signing a four-year lease. The lease is payable in four annual payments of $2.0 million at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 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, 2018 and the second lease payment at December 31, 2019 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 8%. Prepare the lessee's entry at the beginning of the lease Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below Req 1 Req 2 and 4 Req 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 8%. Prepare the lessee's entry at the inception of the lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.) Show lessA Date General Journal Debit Credit 6,624,200 January 01, 2018|Right-of-use asset Lease payable 6,624,200 K Req 2 and 4 Req 5