empt History Current Attempt In Progress On December 31, 2019. Larkspur Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Larkspur to make annual payments of $9,399 at the beginning of each year, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $4.700 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Larkspur uses the straight-line method of depreciation for all of its plant assets. Larkspur's Incremental borrowing rate is 3%, and the lessor's implicit rate is unknown. Click here to view factor tables Your answer is incorrect. What type of lease is this? This is a/an finance lease. Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round places e-g. 5,275) Present value of the lease payments entries for Larkspur for this lease through December 31, 2020. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal placeses. 5.275.) Date Account Titles and Explanation Debit Credit 12/31/19 Lease Lisbility (To record the lease) 12/31/19 : Lease Liability 9399 Cash 9399 (To record first lease payment) 12/31/20 (To record amortization of the right-of-use asset) 12/31/20 Interest Expense