On December 31, 2019, Kingbird Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Kingbird to make annual payments of $8,317 at the beginning of each year of the lease, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $5,300 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Kingbird uses the straight-line method of depreciation for all of its plant assets. Kingbird's incremental borrowing rate is 2%, and the lessor's implicit rate is unknown. Click here to view factor tables. What type of lease is this? This is a/an lease. Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the foctor table provided and round final answer to 0 decimal places es, 5,275.) Present value of the lease payments Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places e .5,275.) Present value of the lease payments Prepare all necessary journal entries for Kingbird for this lease through December 31, 2020. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal ploces eg. 5,275.) (To record interest expense)