Exercise 21-18 (Part Level Submission) On January 1, 2020, a machine was purchased for $940,000 by Tamarisk Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to Carla Vista Inc. for 3 years on January 1, 2020, with annual rent payments of $265,000 due at the beginning of each year, starting January 1, 2020. The machine is Click here to view factor tables (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer is correct. How much should Tamarisk report as income before income tax on this lease for 2020? Income before income tax 9 1 47500 Click If you would like to Show Work for this questions Open Show Work (6) Record the journal entries Carla Vista would record for 2020 on this lease, assuming its incremental borrowing rate is 7% and the rate implicit in the lease is unknown. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record the lease) (To record lease payment) Click if you would like to Show Work for this question: Open Show Work