- On January 1, 2021, the University (NSU) leases several copying machines, for eight (8) years from IBM Corporation. The lease agreement calls for semi-annual payments of $55,000 on June 30 and December 31, of each year beginning in 2021. The university has the option to purchase the machine on January 1, 2029, for $15,000. The machine's estimated useful life is expected to be 10 years with no residual value. NSU uses the sum-of-the year's digit depreciation method of depreciation. The university can borrow money at an interest rate of 10%, but does not know IBM's desired rate of return. Required: (1.) Calculate the amount to be recorded as a leased asset and the associated lease liability. (2.) Prepare all necessary journal entries for the University for this lease for 2021 and 2022. Put a date on each entry. (3.) Prepare the relevant portions of the Income Statement and of the Balance Sheet of NSU for 2021 , with regards to the lease. (3.) What would your answer in part (1.) be if the first payment started on Jan. 1, 2021? Show your computations