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Manufacturers Southern leased high$-$tech electronic equipment from International Machines on January $1,2024.$ International Machines manufactured the equipment at a cost of $$92,000.$ Manufacturers Southern's fiscal year ends December $31.$Manufacturers Southern leased high$-$tech electronic equipment from International Machines on January $1,2024.$ International

Machines manufactured the equipment at a cost of $$92,000.$ Manufacturers Southern's fiscal year ends December $31.$

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Related Information:

Lease term

Quarterly rental payments

$2$ years $(8$ quarterly periods$)$

Economic life of asset

Fair value of asset

$$18,000$ at the beginning of each period

Implicit interest rate

$$134,496$

years

Required:

Show how International Machines determined the $$18,000$ quarterly lease payments.

Prepare appropriate entries for International Machines to record the lease at its beginning, January $1,2024,$ and the

lease payment on April $1,2024.$

Complete this question by entering your answers in the tabs below.

Show how International Machines determined the $$18,000$ quarterly lease payments.

Note: Round your intermediate and final answers to the nearest whole dollar. Round your percentage answer to $1$ decimal

place.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Related Information:

Lease term $2$ years $(8$ quarterly periods$)$

Quarterly rental payments $ $18,000$ at the beginning of each period

Economic life of asset $2$ years

Fair value of asset $ $134,496$

Implicit interest rate $8\%$

Required:

Show how International Machines determined the $$18,000$ quarterly lease payments.

Prepare appropriate entries for International Machines to record the lease at its beginning, January $1,2024,$ and the second lease payment on April $1,2024.$

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