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 $$41,000$ 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 $$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 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 $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD 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 term.

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: Round your intermediate and final answer to the nearest whole dollar amount.

Right$-$of$-$use asset and lease liabilityRequired:

Calculate the amount Federated should record as a right$-$of$-$use asset and lease liability for this finance lease.

Prepare an amortization schedule that describes the pattern of interest expense for Federated over the lease term.

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.

Note: Round your intermediate and final answers to the nearest whole dollar amount. Enter all amounts as positive values.Required $1$

Prepare the appropriate entries for Federated from the beginning of the lease through the end of $t$

Note: Round your intermediate and final answers to the nearest whole dollar amount. If no entry

select $"$No journal entry required" in the first account field.

$1$ Record the lease.

$2$ Record the cash payment.

$3$ Record the amortization for Federated.

$4$ Record lease payment.

$5$ Record the amortization for Federated.

$6$ Record lease payment.

$7$ Record the amortization for Federated.

$8$ Record final lease payment.

$9$ Record the entry to reflect the change from a leased

asset to ownership of that asset.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 $$41,000$ 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 $$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 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 $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Calculate the amount Federated should record as a right$-$of$-$use asset and lease liability for this finance lease.

Prepare an amortization schedule that describes the pattern of interest expense for Federated over the lease term.

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 should record as a right$-$of$-$use asset and lease liability for this finance lease.

Note: Round your intermediate and final answer to the nearest whole dollar amount.

Right$-$of$-$use asset and lease liability