Dumont Corporation, a lessor of office machines purchased a new machine tor December 31,2002, which was delivered the same day to Finley Company The following information relating to the lease transaction is available: The leased asset has an estimated useful life of six years . The lease term is five years. n 5 .At the end of the lease term, the machine will revert to Dumont, at which time it is expected to have a residual value of $70,000 ( none of which is guaranteed by Finely). . Dumont's implicit interest rtes1%, which is known by Finley. . Finley's incremental borrowing rate is 15% at December31 ,2002. Lease rental consists of seven equal annual payments , the first of which was paid on December 31, 2002. Both lessor and lessee are calendar -year corporations and depreciate all f the straight -line basis. xed assets on Information on the present value factors is as follows: 497 0 Present value of $1 for five periods at l 5% Present value of $1 for five periods at 1 1% Present value of an annuity due of 1 for five periods at 11%. 02 Present value of an annuity due of 1 for five periods at 15% . Required: 2)Calculate the expense that the lessee recorded for the year ended December 31, 2003. 3) Prepare all the journal entries on the book of lessee for the years ending December 31, 2002 and December 31, 2003. 4) Determine Gross investment for the lessor