t the beginning of 2018, VHF Industries acquired a machine with a fair value of $8,504,580 by signing a four-year lease. The lease payable in four annual payments of $2.8 million at the end of each year. EV of S1, PV of S1. FVA of $1 PVA of S1, FVAD of $1 and PVAD of $) (Use appropriate factor(s) from the tables provided.) Required: 1. What is the effective rate of interest implicit in the agreement? 2-4. Prepare the lessee's journal entries at the beginning of the lease, the first lease payment at December 31, 2018 and the second lease payment at December 31, 2019. 5. Suppose the fair value of the machine and the lessor's implicit rate were unknown at the time of the lease, but that the lessee's incremental borrowing rate of interest for notes of similar risk was 1% Prepare the lessee's entry at the beginning of the lease. Complete this question by entering your answers in the tabs below Req 1Req 2 and 4Req 5 What is the effective rate of interest implicit in the agreement? he eygli nteres ale Req 2 and 4::> Saved ) & P15-2(A) 6 Journal entry worksheet 2 Record cash payment. 07:58 ed Note: Enter debits before credits. ok Date General Journal Debit Credit December 31 2019 nt nces Record entry Clear entry View general journal