Please show work and calculations on how you got to answer.

Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2018. International Machines manufactured the equipment at a cost of $90,000. Manufacturers Southerns fiscal year ends December 31.

Related Information:

Lease term : 2 years (8 quarterly periods)

Quarterly rental payments : $16,000 at the beginning of each period

Economic life of asset: 2 years

Fair value of asset: $119,552

Implicit interest rate: 8%

Please use present value of annuity due factor = 7.47199

1. Show how International Machines determined the $16,000 quarterly lease payments.

2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2018, and the second lease payment on April 1, 20