On January 1, 2020, a machine was purchased for $1,080,000 by Shamrock Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to Pharoah Inc. for 3 years on January 1, 2020, with annual rent payments of $ 275,000 due at the beginning of each year, starting January 1, 2020. The machine is expected to have a residual value at the end of the lease term of $ 562,500, though this amount is unguaranteed. Record the journal entries Pharoah would record for 2020 on this lease, assuming its incremental borrowing rate is 5% and the rate implicit in the lease is unknown. (Credit account titles are automatically indented when the amount is entered. Do not indent manually . Round answers to decimal places, eg. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit v (To record the lease) V (To record lease payment)