Eederated Fabrications leased a tooting machine on January 1, 2024, for a three-year period ending December 31, 2026. - The lease agreement specified annual payments of $37,000 beginning with the first payment at the beginning of the lease, and each December 31 through 2025 - The company had the option to purchase the machine on December 30,2026 , for $46,000 when its fair value was expected to be $61,000, a sufficlent difference that exercise seems reasonably certain. - The machine's estimated useful life was six years with no salvage value. Federated was aware that the iessor's implicit rate of return was 119. Note: Use tables, Excel, or a financial calculator. (EV or \$1, PV of \$1, EVA of \$1, PVA of S1, EVAD of \$1 and PVAD of $1) Required: 1. Calculate the amount Federated should record as a right-of-use asset and lease liability for this finance lease. 2. Prepare an amortization schedule that describes the pattern of interest expense for Federated over the lease term. 3. Prepare the appropriate entries for Federated from the beginning of the lease through the end of the lease ferm. Complete this question by entering your answers in the tabs below. Calculate the amount Federated should record as a right-of-use asset and lease liability for this finance lease. Note: Hound your intermediate and final answer to the nearest whole dollar amount. Federated Fabrications leased a tooling machine on January 1.2024, for a three-year period ending December 31, 2026. - The lease agreement specified annual payments of $37,000 beginning with the first payment at the beginning of the lease, and each December 31 through 2025. - The company had the option to purchase the machine on December 30, 2026, for $46,000 when its fair value was expected to be $61,000, a sufficient difference that exercise seems reasonably certain. - The machine's estimated useful life was six years with no salvage value. Federated was aware that the lessor's implicit rate of return was 11% : Note: Use tables, Excel, or a financial calculator. (FV of S1. PV of \$1. FVA of \$1. PVA of S1. EVAD of \$1 and PVAD of \$1) Required: 1. Calculate the amount Federated shouid record as a right-of-use asset and lease liability for this finance lease. 2. Prepare an amortization schedule that describes the pattern of interest expense for Federated over the lease term. 3. Prepare the appropriate entries for Federated from the beginning of the lease through the end of the lease term. Complete this question by entering your answers in the tabs below. Prepare an amortization schedule that describes the pattern of interent expense for Federated over the lease term. Noter Round your intermediate and final answers to the nearest whole doliar amount. Enter all amounts as positive values, 1. Calculate the amount Federated should record as a right-of-use asset and lease liability for this finance lease. 2. Prepare an amortization schedule that describes the pattem of interest expense for Federated over the lease term. 3. Prepare the appropriate entries for Federated from the beginning of the lease through the end of the lease term. Complete this question by entering your answers in the tabs below. Prepare the appropriate entries for Federated from the beginning of the lease through the end of the lease term. Note: Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No foumat entry required" in the first account fleld. Journal entry worksheet Note: Enfer deels before credits
