25. On 12-31-20, C leased a machine with a useful life of 5 years. The noncancelable lease agreement required C to make 4 annual lease payments of $250,000 starting 12-31-21. After making the last payment, C will retain the machine. Cs borrowing rate on 12-31-20 was 3%. C uses a straight-line depreciation method (no residual value) and only prepares AJEs every December 31. Determine if this is a long-term finance lease or a long-term operating lease and then prepare the lease-related entries C should make on:

1. December 31, 2020
2. December 31, 2021
3. December 31, 2022
4. December 31, 2023
5. December 31, 2024
6. December 31, 2025