Davidson, Incorporated leased a machine from Barwick Corporation. Barwick completed construction of the machine on January $1$ of the current year. The lease agreement for the machine specified $4$ equal payments at the end of each year. The useful life of the machine was expected to be $4$ years with no residual value. Barwick$$s implicit interest rate is given.Record the amortization of right$-$of$-$use asset on December $31,2024.$

Indicate the amounts related to the lease reported on the year$-$end balance sheets and income statements.

Required:

Determine the amount of each lease payment using Excel's PMT function.

Prepare the journal entry for Davidson, Incorporated at the beginning of the lease.

Prepare an amortization schedule for the $4-$year term of the lease.

Record the first lease payment on December $31.$

Record the amortization of right$-$of$-$use asset on December $31.$

Indicate the amounts related to the lease reported on the year$-$end balance sheets and income statements.