Macinski Leasing leases a new machine to Sharrer SA. The machine has a cost of 70,000 and fair value of 95,000. Under the 3-year, non- cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2019. Macinski expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals of 36,863 are payable on each December 31, beginning December 31, 2019. Instructions a. Calculate the present value of the lease payments. b. Prepare a amortization schedule that would be suitable for the lessee and that covers all the years involved. c. Prepare the journal entry at commencement of the lease for Sharrer. d. Assuming (1) Sharrer does not know Macinski's implicit rate (Sharrer's incremental borrowing rate is 9%), and (2) Sharrer incurs initial directs costs of 10,000. 1. Calculate the present value of the lease payments. 2. Prepare a amortization schedule that would be suitable for the lessee and that covers all the years involved. 3. Prepare the journal entry at commencement of the lease for Sharrer