Problem 14-12A Lease liabilities LO9 Laporte Engineering Company leased a machine on January 1, 2020, under a contract calling for four annual payments of $120 , 000 on December 31,2020 through 2023 . The machine becomes the property of the lessee after the fourth payment. The machine was predicted to have a service life of six years and no residual value, and the interest rate avallable to Laporte Engineering was 8% on the day the lease was signed. The machine was dellvered on January 10, 2020, and was immediately placed in service. Required: 1. Determine the initial net liability created by the lease and the cost of the leased asset. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) 2. Prepare a table showing the calculation of the amount of interest expense allocated to each year the lease is in effect and the carrying amount of the liability at the end of each of those years, (Do not round intermediate caleulations. Round the final answers to nenrest whole dollar. Enter all the amounts as positive values.) 3. Prepare the entry to record the leasing of the machine. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Journal entry worksheet Record signing of lease agreement. Nictei Enter debis before cresits 4. Prepare entries that would be made on December 31, 2021, to record the annual depreciation on a straight-line basis, and the recording of the lease payment. Also show how the machine and the lease liability should appear on the December 31,2021 , balance sheet. (Do not round intermediate calculations. Round the final onswers to nearest whole dollar. Enter all amounts as positive values.) Journal entry worksheet Record the depreciation on leased machinery. fucte - enter detris before zretits \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ LAPORTE ENGINEERING COMPANY } \\ \hline \multicolumn{2}{|c|}{ Partial Balance Sheet } \\ \hline Property, plant and equipment & & \\ \hline Current liabilities & & \\ \hline & & \\ \hline Non-current liabilities & & \\ \hline \end{tabular}