Exercise 21-1 (Part Level Submission) On January 1, 2017, Sarasota Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Sarasota to make annual payments of $9,318 at the beginning of each year, starting January 1, 2017. The machine has an estimated useful life of 6 years and a $5,500 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Sarasota uses the straight-line method of depreciation for all of its plant assets. Sarasota's incremental borrowing rate is 10%, and the lessor's implicit rate is unknown. Click here to view factor tables (b) Your answer is correct. Compute the present value of the minimum lease payments. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) The present value of the minimum lease payments 38855 Prepare all necessary journal entries for Sarasota for this lease through January 1, 2018. (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 O decimal places e.g. 58,971.) Date Account Titles and Explanation Debit Credit (To record the lease.) (To record first payment.) (To record depreciation.) (To record interest.) 1/1/18 (To record second payament.)