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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 usefu 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.

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$($a$)$

Your answer is correct.

What type of lease is this?

This is a$/$an

lease.

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$($b$)$

Your answer is incorrect.

Compute the present value of the lease payments. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answer to $0$ decimal places e$.$g$.5,275.)$

Present value of the lease payments $

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$($c$)$

Prepare all necessary journal entries for Windsor for this lease through December $31,2025.($List all debit entries before credit entries. Record journal entries in the order presented in the

problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.

Round answers to $0$ decimal places e$.\mathrm{.}5,275.)$

$($To record the lease$)$

$($To record first lease payment$)$

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

$($To record lease payment$)$

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