On $1$ March $20$X$4,$ Machine Manufacturing Co$.$ leased a machine to Dry Goods through a three$-$year lease. The annual lease payments of $$19,400$ start on $1$ March $20$X$4,$ and continue for three years. The interest rate implicit in the lease is $9\%$ and the machine will remain with the lessee at the end of the lease. Machines of this type are usually sold for $$53,527$ with a cost to Machine Manufacturing Co$.$ of $$10,400$ to build.

Required:

$1.$ Should this lease be accounted for as a financing$-$type lease or a manufacturer or dealer$-$type lease?

multiple choice

Finance lease

Sales lease

$2.$ What journal entries should be recorded on March $1,20$X$4?($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$