Claster Company leased machinery with a fair value of $1,100,000 from Tanner Corporation on 1/1/24. The agreement is a 5-year noncancellable lease requiring annual payments of $246,110 beginning 1/1/24, with a guaranteed residual of $24,000. Claster expects that the residual will be only $19,500 at the end of the lease. Claster appropriately accounts for the lease as a financing lease, and is aware that the implicit rate in the lease is 5%. What journal entries will Claster need to make in 2024? What will Claster report as its lease liability at 12/31/26?