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On December 31,2024 , Sky5ong Corporation signed a 5 -year, non-cancelable lease for a machine. The terms of the lease called for Skysong to make

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On December 31,2024 , Sky5ong Corporation signed a 5 -year, non-cancelable lease for a machine. The terms of the lease called for Skysong to make annual payments of $8,476 at the beginning of each year, starting December 31,2024 . The machine has an estimated useful life of 6 years and a \$5,200 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Skysong uses the straight-fine method of depreciation for all of its plant assets. Skysong's incremental borrowing rate is 11%, and the lessor's implicit rate is unknown. Click here to view factor tables. (a) What type of lease is this? Prepare all necessary journal entries for Skysong for this lease through December 31, 2025. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are outomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places e.g. 5,275.) Compute the present value of the lease payments. (For caiculation purposes, use 5 decimal ploces as displayed in the factor table provided and round final answer to 0 decimal places e g. 5,275.) Present value of the lease payments \$ eTextbook and Media \begin{tabular}{|lllllll} \hline 8% & 9% & 10% & 11% & 12% & 15% & Periods \\ \hline .92593 & .91743 & .90909 & .90090 & .89286 & .86957 & 1 \\ .85734 & .84168 & .82645 & .81162 & .79719 & .75614 & 2 \\ .79383 & .77218 & .75132 & .73119 & .71178 & .65752 & 3 \\ .73503 & .70843 & .68301 & .65873 & .63552 & .57175 & 4 \\ .68058 & .64993 & .62092 & .59345 & .56743 & .49718 & 5 \\ \hline .63017 & .59627 & .56447 & .53464 & .50663 & .43233 & 6 \\ .58349 & .54703 & .51316 & .48166 & .45235 & .37594 & 7 \\ .54027 & .50187 & .46651 & .43393 & .40388 & .32690 & 8 \\ .50025 & .46043 & .42410 & .39092 & .36061 & .28426 & 9 \\ .46319 & .42241 & .38554 & .35218 & .32197 & .24719 & 10 \\ .42888 & .38753 & .35049 & .31728 & .28748 & .21494 & 11 \\ .39711 & .35554 & .31863 & .28584 & .25668 & .18691 & 12 \\ .36770 & .32618 & .28966 & .25751 & .22917 & .16253 & 13 \\ .34046 & .29925 & .26333 & .23199 & .20462 & .14133 & 14 \\ .31524 & .27454 & .23939 & .20900 & .18270 & .12289 & 15 \\ .29189 & .25187 & .21763 & .18829 & .16312 & .10687 & 16 \\ .27027 & .23107 & .19785 & .16963 & .14564 & .09293 & 17 \\ .25025 & .21199 & .17986 & .15282 & .13004 & .08081 & 18 \\ .23171 & .19449 & .16351 & .13768 & .11611 & .07027 & 19 \\ .21455 & .17843 & .14864 & .12403 & .10367 & .06110 & 20 \\ .19866 & .16370 & .13513 & .11174 & .09256 & .05313 & 21 \\ .18394 & .15018 & .12285 & .10067 & .08264 & .04620 & 22 \\ .17032 & .13778 & .11168 & .09069 & .07379 & .04017 & 23 \\ .15770 & .12641 & .10153 & .08170 & .06588 & .03493 & 24 \\ .14602 & .11597 & .09230 & .07361 & .05882 & .03038 & 25 \end{tabular}

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