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: 2 WParepare the lessesjournat emties atthe begining ofthease, the frst ease pyment at December 31,.2018 and the second 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 not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 4 Req 5 What is the effective rate of interest implicit in the agreement? The implicit interest 120% te Answer is not complete. 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 less No Date General Journal Debit Credit 1January 01, 2018 Right-of-use asset 6,204,900 Lease payable 6,204,900 K Req 2 and 4 Req 5