On January $1,20$X$4,$ Buenos Aires Corporation signed a five year noncancelable lease for a machine. The terms of the lease called for Buenos Aires to make annual payments of $$8,668$ at the beginning of each year, starting January $1,20$X$4.$ The machine has an estimated useful economic life of six years and a $$5,000$ unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Buenos Aires uses the straight line method of depreciation for all of its plant assets. Buenos Aires' incremental borrowing rate is $10\%$ per year, and the lessor's implicit rate in the lease is not known to Buenos Aires.

REQUIRED: $(1)$ Using the attached answer sheet, indicate what type of lease this is to Buenos Aires. Explain your answer.

$(2)$ Using the attached answer sheet, compute the present value of the lease payments. Round your answer to the nearest whole dollar.

$(3)$ Using the attached answer sheet, compute the amount of interest expense, if any, related to this lease that Buenos Aires should report for $20$X$4.$ Round your answer to the nearest whole dollar.

$(4)$ Using the attached answer sheet, compute the amortization expense, if any, related to this leased asset that Buenos Aires should report for $20$X$4.$ Round your answer to the nearest whole dollar.

On January $1,20$X$4,$ Buenos Aires Corporation signed a five year noncancelable lease for a machine. The terms of the lease called for Buenos Aires to make annual payments of $$8,668$ at the beginning of each year, starting January $1,20$X$4.$ The machine has an estimated useful economic life of six years and a $$5,000$ unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Buenos Aires uses the straight line method of depreciation for all of its plant assets. Buenos Aires' incremental borrowing rate is $10\%$ per year, and the lessor's implicit rate in the lease is not known to Buenos Aires.

REQUIRED: $(1)$ Using the attached answer sheet, indicate what type of lease this is to Buenos Aires. Explain your answer.

$(2)$ Using the attached answer sheet, compute the present value of the lease payments. Round your answer to the nearest whole dollar.

$(3)$ Using the attached answer sheet, compute the amount of interest expense, if any, related to this lease that Buenos Aires should report for $20$X$4.$ Round your answer to the nearest whole dollar.

$(4)$ Using the attached answer sheet, compute the amortization expense, if any, related to this leased asset that Buenos Aires should report for $20$X$4.$ Round your answer to the nearest whole dollar.