Problem 21A-8 a2-c Larkspur Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Cullumber Medical Center for a period of 10 years. The normal selling price of the machine is $470,286, and its guaranteed residual value at the end of the non-cancelable lease term is estimated to be $14,000. The hospital will pay rents of $64,000 at the beginning of each year. Larkspur incurred costs of $274,000 in manufacturing the machine and $13,600 in legal fees directly related to the signing of the lease. Larkspur has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 8%. Cullumber Medical Center has an incremental borrowing rate of 8% and an expected residual value at the end of the lease of $10.000. Click here to view factor tables Compute the amount of the initial lease liability. (Round present value factor calculations to 5 decimal places,e.g. 1.25124 and the final answer to 0 decimal places e.g. 5,275.) Initial Lease Liability s CULLUMBER MEDICAL (Lessee) Lease Amortization Schedule (Annuity Due Basis, GRV) Beginning Annual Lease Interest on Reduction of Lease Liability Lease of Year Payment Plus GRV Unpaid Liability Liability Initial PV 2 4 5 6 7 8 9 10 End of 10 Prepare all of the lessee's journal entries for the first year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts, Round answers to 0 decimal places e.g. 5,275.) Account Titles and Explanation Debit Credit (To record the lease of x-ray equipment using finance lease method.) (To record payment of annual lease obligation.) (To record accrual of annual interest on lease obligation.) (To record amortization expense for year 1 using straight-line method.)