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 $15,000 on December 31 of each year beginning on December 31, 2018. Rumsfeld has the option to purchase the machine on December 31, 2021, for $19,000 when its fair value is expected to be $29,000. The machine's estimated useful life is expected to be five years with no residual value. The appropriate interest rate for this lease is 8%.

n/i	PV of $1			PV, ordinary annuity			PV, annuity due
1 period, 8%		.92593			.92593			1.00000
2 periods, 8%		.85734			1.78326			1.92593
3 periods, 8%		.79383			2.57710			2.78326

Required: 1. Calculate the amount to be recorded as a right-of-use asset and the associated lease payable. 2. Prepare Rumsfeld's journal entries for this lease for 2018 and 2019.

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 $15,000 on December 31 of each year beginning on December 31, 2018. Rumsfeld has the option to purchase the machine on December 31, 2021, for $19,000 when its fair value is expected to be $29,000. The machine's estimated useful life is expected to be five years with no residual value. The appropriate interest rate for this lease is 8%. n/i 1 period, 8% 2 periods, 8% 3 periods, 8% PV of $1 PV, ordinary annuity .92593 .92593 .85734 1.78326 .79383 2.57710 PV, annuity due 1.00000 1.92593 2.78326 Required: 1. Calculate the amount to be recorded as a right-of-use asset and the associated lease payable. 2. Prepare Rumsfeld's journal entries for this lease for 2018 and 2019. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the amount to be recorded as a right-of-use asset and the associated lease payable. (Round your answer to the nearest whole dollar amounts.) Right-of-use asset Required 1 Required 2 >