On January 1, 2019, ET Mags Inc. signed a 6-year non-cancelable lease for an alloy wheel molding injection press. The terms of the lease called for ET Mags to make annual payments of $54,291.43 at the beginning of each year, starting January 1, 2019.

The alloy wheel molding injection press has an estimated useful life of 6 years and a $10,000 unguaranteed residual value. The press reverts back to the lessor at the end of the lease term.

ET Mags uses the straight-line method of depreciation for all of its plant assets and has an incremental borrowing rate of 12%; the lessor's implicit rate is unknown.

Required:

(a) Compute the present value of the minimum lease payments; round to nearest whole dollar.

(b) Prepare all necessary journal entries for ET Mags covering this lease through December 31, 2020; round your entries to nearest whole dollar.