Rumsfeld Corporation leased a machine on December 31, 2018, for a three-year period. The lease agreement calls for annual payments in the amount of $17,000 on December 31 of each year beginning on December 31, 2018. Rumsfeld has the option to purchase the machine on December 31, 2021, for $21,000 when its fair value is expected to be $31,000. The machine's estimated useful life is expected to be six years with no residual value. The appropriate interest rate for this lease is 10%.

n/i	PV of $1			PV, ordinary annuity			PV, annuity due
1 period, 10%		0.90909			0.90909			1.00000
2 periods, 10%		0.82645			1.73554			1.90909
3 periods, 10%		0.75131			2.48685			2.73554

Required: 1. Calculate the amount to be recorded as a right-of-use asset and the associated lease liability. 2. Prepare an amortization schedule for this lease.