Manufacturers Southern leased high$-$tech electronic equipment from International Machines on January $1,2024.$ International Machines manufactured the equipment at a cost of $$95,000.$ Manufacturers Southern's fiscal year ends December $31.$

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)$

Related Information:

Lease term $2$ years $(8$ quarterly periods$)$

Quarterly rental payments $ $16,000$ at the beginning of each period

Economic life of asset $2$ years

Fair value of asset $ $119,552$

Implicit interest rate $8\%$

Required:

Show how International Machines determined the $$16,000$ quarterly lease payments.

Prepare appropriate entries for International Machines to record the lease at its beginning, January $1,2024,$ and the second lease payment on April $1,2024.$