On December $31,2024,$ Windsor Corporation signed a $5-$year, non$-$cancelable lease for a machine. The terms of the

lease called for Windsor to make annual payments of $$8,092$ at the beginning of each year, starting December $31,2024.$

The machine has an estimated useful life of $6$ years and a $$4,900$ unguaranteed residual value. The machine reverts

back to the lessor at the end of the lease term. Windsor uses the straight$-$line method of depreciation for all of its plant

assets. Windsor's incremental borrowing rate is $11\%$ and the lessor's implicit rate is unknown.

$($a$)$ What type of lease is this?

This is a $\frac{?}{?}$ an

lease.

$($b$)$ Compute the present value of the lease payments. For calculation purposes, use $5$ decimal places and round

final answer to $0$ decimal places

Present value of the lease payments

$($c$)$ Prepare all necessary journal entries for Windsor for this lease through December $31,2025.$ Round answer to $0$

decimal places.

$($To record the lease$)$

$($To record first lease payment$)$

$1$

$($To record the lease$)$

$($ To record amortization of the right$-$of$-$use asset$)$

$($To record lease payment$)$