Exercise 21-1 On January 1, 2017, Wildhorse Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Wildhorse to make annual payments of $8,978 at the beginning of each year, starting January 1, 2017. The machine has an estimated useful life of 6 years and a $5,200 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Wildhorse uses the straight-line method of depreciation for all of its plant assets. Wildhorse's incremental borrowing rate is 10%, and the lessor's implicit rate is unknown. Click here to view factor tables Compute the present value of the minimum lease payments. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to o decimal places e.g. 58,971.) The present value of the minimum lease payments Prepare all necessary journal entries for Wildhorse for this lease through January 1, 2018. (Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to 0 decimal places e.g. 58,971.) Date Account Titles and Explanation Debit Credit (To record the lease.) (To record first payment.) (To record depreciation.) (To record interest.) 1/1/18 (To record second payament.)