Show Attempt History Current Attempt in Progress On December 31, 2016, Tamarisk Corporation signed a 5 year, non-cancelable lease for a machine. The terms of the lease called for Tamarisk to make annual payments of $7,880 at the beginning of each year, starting December 31, 2016. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Tamarisk uses the straight line method of depreciation for all of its plant assets. Tamarisk's incremental borrowing rate is 8%, and the lessor's implicit rate is unknown. Click here to view the factor table. Your answer is correct. What type of lease is this? This is a/an finance lease. e Textbook and Media Your answer is incorrect A o E 10:27 PM 0621/2000 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 O decimal places, eg. 5,275.) Present value of the lease payments $ e Textbook and Media Prepare all necessary journal entries for Tamarisk for this lease through December 31, 2017. (Record journal entries in the order presented in the problem. Credit account titles are automatically Indented when amount is entered. Do not Indent manually. Round answers to decimal places eg. 5,275) Debit Credit Date 12/31/16 Account Titles and Explanation Right-of-Use Asset - Lease Liability (To record the lease) Lease Liability 12/31/16 - 7880 7880 Cash (To record first lease payment) Amortization Expense 12/31/17 Right-of-Use Asset (To record amortization of the right-of-use asset) 12/31/17 (To record interest expense)