Rumsfeld Corporation leased a machine on December 31, 2021, for a three-year period. The lease agreement calls for annual payments in the amount of $14,000 on December 31 of each year beginning on December 31, 2021. Rumsfeld has the option to purchase the machine on December 31, 2024, for $17,500 when its fair value is expected to be $27,500. The machine's estimated useful life is expected to be five years with no residual value. The appropriate interest rate for this lease is 10%. n, i 1 period, 10% 2 periods, 10% 3 periods, 10% PV of $1 PV, ordinary annuity 0.90909 0.90909 0.82645 0.75131 1.73554 2.48685 PV, annuity due 1.00000 1.90909 2.73554 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 2021 and 2022