Please use Excel functions to determine additional values.

On January 1, 2015, Galactic Manufacturing leased another piece of machinery for use in its North American operations from Evans Bank. The nine-year, non-cancellable lease requires annual lease payments of $13,000, beginning January 1, 2015, and at each December 31 thereafter through 2022. The lease agreement does not transfer ownership of the machinery, nor does it contain a bargain purchase option. The machinery has a fair value of $83,650 and an estimated life of 10 years. Galactic depreciates its leased equipment using the straight-line method with no residual value. Evans Bank's implicit rate of 10% is known to Galactic Read the requirements. (Click the icon to view the Future Value of $1 (Click the icon to view the Future Value of arn (Click the icon to view the Future Value of an (Click the icon to view the Present Value of $1 table.) table (Click the icon to view the Present Value of an Ordinary Annuity table.) Ordinary Annuity table.) (Cick the lcon to view the Present Value of arn Annuity Due table.) Annuity Due table.) Before completing the requirements, identify the present value of the lease payments. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculation If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X XXXXX. Round your final answer to the nearest whole dollar.) The present value (PV) of the payments due under the lease is S Analyze the four criteria to determine whether the lease is an operating or capital lease Begin by identifying any of the capital lease criteria that Galactic meets. (Select any and all that apply.) 1. 2. The lease contains a bargain purchase option. The lease transfers ownership of the property to the lessee at the end of the lease term. The lease temm is greater than or equal to 75% of the estimated economic life of the property The present value of the minimum lease payments is greater than or equal to 90% of the fair market value of the property at the inception of the lease 3. 4 This is a(n) V lease for the lessee (Galactic) because of the capital criteria is(are) met. Provide the journal entries for Galactic for 2015. (Record debits first then credits. Exclude explanations from any journal entries. Round amounts to the nearest whole dollar. If no entry is required select "No Entry Required" on the first line of the journal entry table and leave all remaining cells in the table blank.) Begin by preparing the entry for Galactic at the inception of the lease on January 1, 2015. Exclude the first annual lease payment from this entry. We will record that payment in the next step. Account January 1, 2015 Prepare the entry for the first annual lease payment made on January 1, 2015 Account January 1, 2015 Record Galactic's entry for the depreciation expense on the leased machinery on December 31, 2015 Account December 31, 2015 Prepare the entry to record the second annual lease payment on December 31, 2015 Account December 31, 2015