E21.2 L02,4) (Lessee Entries Finance Lease with Unguaranteed Residual Value) On December 31, 2016 Burke Corp tion signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Burke to make annual payments of $8,668 at the beginning of each year, starling December 31, 2016. The machine has an estimated useful life of 6 years and a S5,000 unguar- anteed residual value. The machine reverts back to the lessor at the end of the lease term. Burke uses the straight-line method of depreciation for all of its plant assets. Burke's incremental borrowing rate is 5%, and the lessor's implicit rate is unknown. Instructions (a) What type of lease is this? Explain. b) Compute the present value of the lease payments (c) Prepa re all necessary journal cntries for Burke for this lease through December 31, 2017