CALCULATOR FULL SCREEN PRINTER VERSION BACK Exercise 21A-18 a-C On January 1, 2017, a machine was purchased for $900,000 by Young Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to St. Leger Inc. for 3 starting January 1, 2017. The machine is expected to have a residual value at the end of the lease term of $562,500, though this amount is years on January 1, 2017, with annual rent payments of $150,955 due at the beginning of each year, unguaranteed. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much should Young report as income before income tax on this lease for 20177 Income before income tax s 38,455 SHOW LIST OF ACCOUNTS TEXT LINK TO Record the journal entries St. Leger would record for 2017 on this lease, assuming its incremental borrowing rate is 69% and the rate implicit in the lease is unknown account titles are automatically indented when the amount is entered. Do not indent manually, Round answers to o decimal places, a.g. 5,275.) Account Titles and Explanation Date Debit Credit (To record the lease) 8 0