On 12/31/19, Greene Company leased machinery with a fair value of $1,575,000 from Gray Corporation. The agreement is a 6-year noncancellable lease requiring annual payments
of $300,000 beginning 12/31/19. Greene appropriately accounts for the lease as a financing lease, and is aware that the implicit rate in the lease is 6%. What journal entry will
Greene make on 12/31/22? What will Greene report as its lease liability at 12/31/22?