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On December 31, 2024, Tamarisk Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Tamarisk to make annual

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On December 31, 2024, Tamarisk Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Tamarisk to make annual payments of $7,880 at the beginning of each year, starting December 31, 2024. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Tamarisk uses the straight-line method of depreciation for all of its plant assets. Tamarisk's incremental borrowing rate is 5%, and the lessor's implicit rate is unknown. Click here to view factor tables. (a) Your answer has been saved. See score details after the due date. What type of lease is this? ompute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the factor table rovided and round final answer to 0 decimal places e.g. 5,275.) Present value of the lease payments $ Attempts: 1 of 1 usec Prepare all necessary journal entries for Tamarisk for this lease through December 31, 2025. (List all debit entries before credit entries. Record joumal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles ond enter Ofor the amounts. Round answers to 0 decimal placeses. 5,275 .) Prepare all necessary journal entries for Tamarisk for this lease through December 31, 2025. (List all debit entries before credit entries. Record joumal entries in the order presented in the problem. Credit account tittes ore outomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Round answers to 0 decimal places e 3.5,275.) (To record amortization of the right-of-use asset) (To record lease payment)

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