On January 1, 2017, Riverbed Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Riverbed to make annual payments of $8,162 at the beginning of each year, starting January 1, 2017. The machine has an estimated useful life of 6 years and a $5,100 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Riverbed uses the straight-line method of depreciation for all of its plant assets. Riverbeds incremental borrowing rate is 9%, and the lessors implicit rate is unknown. Compute the present value of the minimum lease payments and prepare all necessary journal entries for Riverbed for this lease through January 1, 2018