Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2024. International Machines manufactured the equipment at a cost of $85,000. 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 $ 15,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $ 112,080 Implicit interest rate 8% Required: Show how International Machines determined the $15,000 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. Note: Round your intermediate and final answers to the nearest whole dollar.

PV factors based on
Table or Calculator function:	PVAD of $1
PV of Lease
n =
i =
Lease Payment