Laporte Engineering Company leased a machine on January $1,2023,$ under a contract calling for four annual payments of $$70,000$ on

December $31,2023$ through $2026.$ The machine becomes the property of the lessee after the fourth payment. The machine was

predicted to have a service life of six years and no residual value, and the interest rate available to Laporte Engineering was $8\%$ on the

day the lease was signed. The machine was delivered on January $10,2023,$ and was immediately placed in service.

Required:

Determine the initial net liability created by the lease and the cost of the leased asset. $($Do not round Intermedlete colculatlons.

Round the final answers to the nearest whole dollar.$)$

Initial amount of the net liability

Prepare a table showing the calculation of the amount of interest expense allocated to each year the lease is in effect and the

carrying amount of the liability at the end of each of those years. $($Do not round Intermedlate colculatlons. Round the finol answers to

nearest whole dollar. Enter all the amounts as positlve volues.$)$