On January 1, 2018, Naw Corporation leased a piece of machinery from Hoffherr Machinery. The lease is a(n) 7 year, non-cancellable lease that requires lease payments of $8,000 due at the beginning of each year. The lease has been determined to be a capital (finance) lease because at least one of the classification criteria has been met. Naw Corporation needs to determine the present value of the lease payments so that they can record the asset and the liability at lease inception. Hoffherr Machinery implicit rate of 8% is known to Naw Corporation. Complete the following from the perspective of Naw Corporation. Which of the following financial statement item is impacted in this transaction? The problem is solving for: The calculation involves: PV Annuity Due Accounts To record the initial lease liability: Lease payable To record the first lease payment: lease payable cash - PMT Table Method Date of Delivery Debit Leases Obligation Present Value An Annuity Due x Factor x Credit