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 $18,500 on December 31 of each year beginning on December 31,2024 . Rumsfeld has the option to purchase the machine on December 31,2027 , for $22,500 when its fair value is expected to be $32,500. The machine's estimated useful life is expected to be six years with no residual value. The appropriate interest rate for this lease is 12%. Required: 1. Calculate the amount to be recorded as a right-of-use asset and the associated lease payable. 2. Prepare Rumsfeld's joumal entries for this lease for 2024 and 2025. Complete this question by entering your answers in the tabs below. Calculate the amount to be recorded as a right-of-use asset and the associated lease payable. Note: Round your intermediate calculations and final answer to the nearest whole dollar amounts. Prepare Rumsfeld's journal entries for this lease for 2024 and 2025 . Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermed calculations and final answers to the nearest whole dollar amounts. Record the lease. 3 Record the cash payment. 3 Record the cash payment. 4 Record the amortization expense