On December 31, 2019, Splish Brothers Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Splish Brothers to make annual payments of \$8.148 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 $5.500 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Splish Brothers uses the straight-line method of depreciation for all of its plant assets. Splish Brothers's incremental borrowing rate is 10%, and the lessor's implicit rate is unknown. Click here to view factor tables. Compute the present value of the lease payments. (For calculation purposes, use 5 decimal ploces as disployed in the factor table provided and round final answer to 0 decimal places eg. 5, 275.) Present value of the lease payments Prepare all necessary journal entries for Splish Brothers for this lease through December 31, 2020, (Record joumal entries in the onder presented in the problem. Crodit account titles ore automatically indented when amount is entered, Do not indent manually, Round answers to Odecimal ploces es, 5.275. (To record first lease payment) \begin{tabular}{|l|l|} \hline 12/31/20 Amortization Expense & 6825 \\ \hline Right-of-Use Asset \end{tabular} (To record amortization of the right-of-use asset) (To record interest expense)