Rumsfeld Corporation leased a machine on December $31,2024,$ for a three$-$year period. The lease agreement calls for annual payments in the amount of $$14,500$ on December $31$ of each year beginning on December $31,2024.$ Rumsfeld has the option to purchase the machine on December $31,2027,$ for $$16,500$ when its fair value is expected to be $$26,500.$ The machine's estimated useful life is expected to be five years with no residual value. The appropriate interest rate for this lease is $12\%.$

n$,$ i PV of $$1$ PV$,$ ordinary annuity PV$,$ annuity due

$1$ period, $12\%0\mathrm{.}892860\mathrm{.}892861\mathrm{.}00000$

$2$ periods, $12\%0\mathrm{.}797191\mathrm{.}690051\mathrm{.}89286$

$3$ periods, $12\%0\mathrm{.}711782\mathrm{.}401832\mathrm{.}69005$

Required:

Calculate the amount to be recorded as a right$-$of$-$use asset and the associated lease payable.

Prepare Rumsfeld's journal entries for this lease for $2024$ and $2025.$