Oriole Co$.$ leased machinery from Young, Inc. on January $1,2025.$ The lease term was for $8$ years, with equal annual rental payments of $\backslash (\backslash$$ $5,000\backslash )$ at the beginning of each year. In addition, the lease provides an option to purchase the machinery at the end of the lease term for $\backslash (\backslash$$ $3,000\backslash ),$ which Oriole is reasonably certain it will exercise as it believes the fair value of the machinery will be at least $\backslash (\backslash$$ $5,000\backslash ).$ The machinery has a useful life of $10$ years and a fair value of $\backslash (\backslash$$ $40,000\backslash ).$ The implicit rate of the lease is not known to Oriole. Oriole's incremental borrowing rate is $\backslash (10\backslash \%\backslash ).$

Prepare Oriole's $2025$ journal entries. $($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answers to $0$ decimal places, e$.$g$.5,275.$ If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Record journal entries in thadies amvilurd in the problem.$)$

$($To record lease liability$)$

$($To record lease payment$)$

$1$

$1$

$($To record interest expense$)$

$1$

$\backslash (]\backslash )$

$($To record amortization of the right$-$of$-$use asset$)$