On January 1, 2020, a machine was purchased for $1,200,000 by Marin 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 Cullumber Inc. for 3 years on January 1. 2020, with annual rent payments of $290.000 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. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) How much should Marin report as income before income tax on this lease for 2020? Income before income tax $ e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above, Record the journal entries Cullumber would record for 2020 on this lease, assuming its incremental borrowing rate is 9% 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 Debit Credit Account Titles and Explanation Leased Equipment 1/1/20 Lease Liability (To record the lease) Lease Liability 1/1/20 290,000 29 Cash (To record lease payment) Lease Liability 12/31/20 Interest Expense Cash 29 e Textbook and Media