On January 1, 2025 , 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 lexod to Pharoah Inc for 3 years on Jaruary 1.2025 , With annual rent payments of $275,000 due at the beginning of each year, starting January 1.2025 . The machine is expected to have a residual value at the end of the lease term of $562500, though thit amount is unguaranteed. Click hire to view factor tsbies. (For calcalation purposes, we 5 decimal places as displayed in the foctor table provided) (a) How much should Shamrock report as income before income tax on this lease for 2025 ? Record the journal entries Pharoah would record for 2025 on this lease, asuming its incremental borrowing rate is 5% and the