Daycore, Inc., an equipment manufacturer, leased a machine to Amana Company on January 1, 2017. The lease is for a 6-year period and requires equal annual payments of $41,747 at the beginning of each year. The first payment is received on January 1, 2017. Daycore had built the machine during 2016 for a total cost of $160,000. Collectability of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by Daycore. Daycore set the annual rental to ensure a 10% rate of return. The machine has an economic life of 8 years with no residual value and reverts to Daycore at the termination of the lease. Required (a) Compute the amount of the lease receivable. (b) Prepare all necessary journal entries for Daycore for 2017 and 2018