Carla Vista Co. leased machinery from Young, Inc. on January 1, 2020. The lease term was for 8 years, with equal annual rental payments of $5,700 at the beginning of each year. In addition, the lease provides an option to purchase the machinery at the end of the lease term for $2,000, which Carla Vista is reasonably certain it will exercise as it believes the fair value of the machinery will be at least $4,000. The machinery has a useful life of 10 years and a fair value of $39,000. The implicit rate of the lease is not known to Carla Vista. Carla Vistas incremental borrowing rate is 6%. Prepare Carla Vistas 2020 journal entries