Cullumber Co. leased machinery from Young, Inc. on January 1, 2020. 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 the end of the lease term for $3,000, which Cullumber is reasonably certain it will exercise as it believes the fair value of the machinery will be at least $6,000. The machinery has a useful life of 10 years and a fair value of $45,000. The implicit rate of the lease is not known to Cullumber. Cullumbers incremental borrowing rate is 6%. Prepare Cullumbers 2020 journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
1/1/2012/31/20
	(To record lease liability)
1/1/2012/31/20
	(To record lease payment)
1/1/2012/31/20
	(To record interest expense)
1/1/2012/31/20
	(To record amortization of the right-of-use asset)