On 1/1/21, Elliott Company leased machinery with a fair value of $1,185,000 from Greene Corporation. The cost of the machinery to Greene was $850,000. The lease is for 8 years; the expected life of the machinery is 6 years. Elliott guaranteed a residual of $15,000 but expects the value of the residual to be only $10,000 at the end of the lease term. The rate used by Greene to set lease payments was 6%. What journal entries will Elliott make in 2021 and 2022? What will Elliott report as its lease liability at 12/31/22? On 1/1/21, Elliott Company leased machinery with a fair value of $1,185,000 from Greene Corporation. The cost of the machinery to Greene was $850,000. The lease is for 8 years; the expected life of the machinery is 6 years. Elliott guaranteed a residual of $15,000 but expects the value of the residual to be only $10,000 at the end of the lease term. The rate used by Greene to set lease payments was 6%. What journal entries will Elliott make in 2021 and 2022? What will Elliott report as its lease liability at 12/31/22