On December 31, 2019, Teal Mountain Corporation signed a 6-year, non-cancelable lease for a machine. The terms of the lease called for Teal Mountain to make annual payments of $11.759 at the beginning of each year, starting December 31, 2019. The machine has an estimated useful life of 8 years and a $6.000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Teal Mountain uses the straight-line method of depreciation for all of its plant assets. Teal Mountain's incremental borrowing rate is 7%, and the lessor's implicit rate is unknown. Click here to view factor tables. * Your answer is incorrect. What type of lease is this for the lessee? This is a/an lease. eTextbook and Media List of Accounts * 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 decimal places e.g. 5,275.) Present value of the lease payments $ eTextbook and Media List of Accounts X Your answer is incorrect. Prepare all necessary journal entries for Teal Mountain 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 O decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Cred (To record the lease) (To record first lease payment) 100 IN DA ONA (To record amortization of the right-of-use asset) (To record second lease payment)