Diablo Company leased a machine from Juniper Corporation on January 1, 2018. The machine has a fair value of $14,000,000. The lease agreement calls for three equal payments at the end of each year in the amount of $5,828,886. The useful life of the machine was expected to be three years with no residual value. The appropriate interest rate for this lease is 12%.

Required: 1. 2. & 3. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.)