Problem #2 Rumsfeld Corporation leased a machine on December 31, 2018, for a three-year period. The lease agreement calls for annual payments in the amount of $21,000 on December 31 of each year beginning on December 31, 2018. Rumsfeld has the option to purchase the machine on December 31, 2021, for $25,000 when its fair value is expected to be $35,000. The machine's estimated useful life is expected to be four years with no residual value. The appropriate interest rate for this lease is 8%. Required: 1. Calculate the amount to be recorded as a right-of-use asset and the associated lease liability. 2. Prepare an amortization schedule for this lease