Wildhorse Co. leased machinery from Young, Inc. on January 1 , 2020. The lease term was for 8 years, with equal annual rental payments of $5,200 at the beginning of each year. In addition, the lease provides an option to purchase the machinery at the end of the lease term for $3,000, which Wildhorse is reasonably certain it will exercise as it believes the fair value of the machinery will be at least $5,000. The machinery has a useful life of 10 years and a fair value of $45,000. The implicit rate of the lease is not known to Wildhorse. Wildhorse's incremental borrowing rate is 9%. Prepare Wildhorse's 2020 journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Question 6 of 80.7/1 (To record lease liability) Lease Liability 5200 (To record lease payment) Interest Expense \begin{tabular}{|l|} \hline 2590 \\ \hline \hline \end{tabular} Lease Liability \begin{tabular}{|} \hline 2590 \\ \hline \end{tabular} (To record interest expense) Amortization Expense \begin{tabular}{|l||} \hline 3398 \\ \hline \hline \end{tabular} Right-of-Use Asset (To record amortization of the right-of-use asset)