Cullumber Co. leased machinery fram Young, Inc. on anuary, 2017. The lease term was for 8 years, with equal annual rental payments of $5,500 at the beginning of each year. In addition, the lease provides an option to purchase the machinery at tha end of the lease term for $2,000, which Cullumber is reasonably certain it will exerdse as it bel eves 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 $35,000. The implicit rate of the lease is not known to Cullumber, Cullumber's incremental borrowing rate is 6%. Prepare Cullumber's 2017 jourrnal eritries. (Credit account tilles are autnalically inderted when Lhe arnount is entered. Do not indent nanually. For calculation purposes, use 5 decimal places ds displayed in the lactor lable provided and round final answers to 0 decimal places, c.g. 5,275.) Date Account Titles and Explanation Debit Credit 11/17 right of use Lease Liability To record lease lubiry) 1/1/17 ease liability 5500 Cashi 5500 To rerord lease paymant) 12/31/17 Interest Expense Lease Liability 2360 To record Interest expense) 12/31/17 Right-of-Use Asset 3500 (To reccrd amortization of the right-of-use asset)