On December 31, 2019, Marin Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Marin to make annual payments of $8,479 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 $4,600 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Marin uses the straight-line method of depreciation for all of its plant assets. Marin's incremental borrowing rate is 4%, and the lessor's implicit rate is unknown. Click here to view factor tables. Your answer is correct. What type of lease is this? This is a/an finance lease. * Your answer is incorrect. 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 eg. 5,275.) Present value of the lease payments e Textbook and Media List of Accounts ! - Your answer is partially correct. Prepare all necessary journal entries for Marin 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 decimal places eg. 5,275.) Account Titles and Explanation Debit Credit Date 12/31/19 Accumulated Depreciation-Leased Machinery Lease Liability (To record the lease) 12/31/19 V Lease Liability Cash (To record first lease payment) Accumulated Depreciation Machinery 12/31/20 Accumulated Depreciation Leased Machinery (To record amortization of the right-of-use asset) 12/31/20 V Lease Liability Interest Expense | Cash (To record interest expense)