At the beginning of 2024 , VHF Industries acquired a machine with a fair value of $5,927,330 by signing a three-year lease. The lease is payable in three annual payments of $2.3 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 7\%. Prepare the lessee's entry at the beginning of the lease. Complete this question by entering your answers in the tabs below. 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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in 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 7%. Prepare the lessee's entry at the beginning of the lease. Note: 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. Do not round your intermediate calculations. Round your answers to nearest whole dollars