Federated Fabrications leased a tooling machine on January 1, 2018, for a three-year period ending December 31, 2020. The lease agreement specified annual payments of $38,000 beginning with the first payment at the beginning of the lease, and each December 31 through 2019. The company had the option to purchase the machine on December 30, 2020, for $47,000 when its fair value was expected to be $62,000 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 20%. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 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 term Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the amount Federated should record as a right-of-use asset and lease liability for this finance lease. (Round your intermediate and final answer to the nearest whole dollar amount.) Right of une asset and lease liability Required 2 > Federated Fabrications leased a tooling machine on January 1, 2018, for a three-year period ending December 31, 2020. The lease agreement specified annual payments of $38.000 beginning with the first payment at the beginning of the lease, and each December 31 through 2019. The company had the option to purchase the machine on December 30, 2020, for $47.000 when its fair value was expected to be $62000 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 20% (FV of $1. PV of $1. FVA of $1. PVA of S1, FVAD of S1 and PVAD or SD) (Use appropriate foctor(s) from the tables provided.) 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 term. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an amortization schedule that describes the pattern of interest expense for Federated over the lease term. (Round your intermediate and final answer to the nearest whole dollar amount. Enter all amounts as positive values.) Lease Amortization Schedule Effective Decrease in Payments Balance Date Outstanding Balance 01/01/2018 12/31/2018 12/31/2019 12/31/2020 Total Required 1 Required 2 Required 3 Prepare the appropriate entries for Federated from the beginning of the lease through the end of the lease term. (Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No entry required" in the first account field.) View transaction list 1 Record the lease. 2 Record the cash payment. 3 Record the amortization of right-to-use asset for Federated. 4 Record lease payment. Credit 5 Record the amortization of right-to-use asset for Federated 6 Record lease payment. 7 Record the amortization of right-to-use asset for Note : = journal entry has been entered Record entry Clear entry View general journal JHS LU ule nearest whole dollar amount. If no entry is required for a transact entry required" in the first account field.) uyir Ure el U lie les View transaction list 3 Record the amortization of right-to-use asset for Federated. Record lease payment. 5 Record the amortization of right-to-use asset for Federated. Credit 6 Record lease payment. 7 Record the amortization of right-to-use asset for Federated. 8 Record final lease payment. Note : = journal entry has been entered Record entry Clear entry View general journal