B) Compute the present value of the lease payments.

C) Prepare all necessary journal entries through December 31, 2017.

Exercise 21A-2 a-c (Part Level Submission) On December 31, 2016, Marin Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Marin to make annual payments of $8,479 at the beginning of each year, starting December 31, 2016. The machine has an estimated useful life of 6 years anda $4,600 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Marin uses the straight-line method of depreciation for all of its plant assets. Marin's incremental borrowing rate is 7%, and the lessor's implicit rate is unknown. Click here to view the factor table