Federated Fabrications leased a tooling machine on January 1, 2021, for a threeyyear period ending December 31.2023. The lease agreement specfied annual payments of $41,000 beginning with the first payment at the beginning of the lease, and each becember 31 through 2022 . The company had the option to purchase the machine on December 30,2023 , for $50,000 when its fair value was expected to be $65,000, a sufficient difference that exercise seems reasonably certain. The machine's estimated useful life was sin years with no salvage value. Federated was aware that the lessor's implicit rate of return was 11. iEV of S1. PV of S1, EVA of St, PVA of S1. EVAD of 51 and PVAD of Si) (Use appropriate foctor(s) from the tobles 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. Calculate the amount Federated thould record as a right-of-use asset and toase fiablicty for this finance leatre- pround your intermediate and final ahtwer to the nearest whote doflar ampunt.) 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 pattem of interest expense for Federated over the leuse 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 interest expense for federated over the lease term. (Round your intermediate and final aniwers to the nearest whole doltar amount. Enter all amounte as positive values.) Frepare the appropriate entries for Federated from the beginning of the lease through the end of the lexse term. (Aound your. intermedate and finol answers to the nearest whole dollar amount. If no entry is required for a transaction/ivent, select "No journal entry required' in the firit ascount field.) Journal entry worksheet Journal entry worksheet 1 3. 4 Journal entry worksheet 1 5 6. 7 Record amortization of the right-of-use asset for Federated. Note: Enter debits before credits. Journal entry worksheet 1 2 3 Journal entry worksheet 1 2 3. 7 Record amortization of the right-of-use asset for Federated. Note: Enter debits before dredits. Journal entry worksheet Journal entry worksheet 1 2 3. 5 Record amortization of the right-of-use asset for Federated. Notel Enter debits beiore credits. Journal entry worksheet 1234
