Rumsfeld Corporation leased a machine on December 31, 2016, for a 3-year period. The lease agreement calls for annual payments in the amount of $21,000 on December 31 of each year beginning on December 31, 2016. Rumsfeld has the option to purchase the machine on December 31, 2019, for $25,000 when its fair value is expected to be $35,000. The machine's estimated useful life is expected to be four years with no residual value. Rumsfeld uses straight-line depreciation for this type of machinery. The appropriate interest rate for this lease is 8%. PV of $1 PV, ordinary annuity PV, annuity due 1 period, 8% 0.92593 0.92593 1.00000 2 periods, 8% 1.92593 0.85734 1.78326 2.57710 2.78326 3 periods, 8% 0.79383 Required 1. Calculate the amount to be recorded as a leased asset and the associated lease liability. Leased asset/liability