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Federation Fabrications leased a tooling machine on January 1, 2021, for a three year period ending December 31, 2023. The lease agreement specified annual payments

Federation Fabrications leased a tooling machine on January 1, 2021, for a three year period ending December 31, 2023. The lease agreement specified annual payments of $36,000 beginning with the first payment at the beginning of the lease, and each December 31 through 2022. The company had the option to purchase the machine on December 30, 2023, for $45,000 when its fair value was expected to be $60,000, a sufficient difference that exercise seems reasonably certain. The machine's estimated useful life

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