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Laporte Engineering Company leased a machine on January 1, 2023, under a contract calling for four annual payments of $30,000 on December 31,2023 through 2026. The machine becomes the property of the lessee after the fourth payment. The machine was predicted to have a service life of six years and no residual value, and the interest rate avallable to Laporte Engineering was 12% on the day the lease was signed. The machine was delivered on January 10, 2023, and was immediately placed in service. Required: 1. Determine the initial net liability created by the lease and the cost of the leased asset. (Do not round intermediate calculotions. Round the final onswers to the nearest whole dollor.) 2. Prepare a table showing the calculation of the amount of interest expense allocated to each year the lease is in effect and the carrying amount of the liability at the end of each of those years. (Do not round intermediate colculations. Round the finol answers to nearest whole dollar. Enter all the amounts as positive values.) 3. Prepare the entry to record the leasing of the machine. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Journal entry worksheet Record signing of lease agreement. Note: Enter debits before credits. 4. Prepare entries that would be made on December 31,2024 , to record the annual depreciation on a straight line basis, and the: recording of the lease payment. Also show how the machine and the lease liabllty should appear on the December 31,2024 , balance sheet. (Do not round intermediate calculations. Round the final onswers to neorest whole dollor. Enter oll amounts as positive values.) Journal entry worksheet Hecord the depreciation on bosud mochinery Notei friter debts bupore andt LAPORTE ENGINEERING COMPANY Partial Balance Sheet December 31,2024

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