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In: AccountingOn January 2, 2017 Nash Company leases a machine with a fairvalue of $34,000 from...On January 2, 2017 Nash Company leases a machine with a fairvalue of $34,000 from Snead, Inc., on the following terms:1.Noncancelable term of 4 years.2.Rental of $8,400 per year (at beginning of each year).3.Estimated residual value after 4 years is $4,200. Nash Companyguarantees the residual value of $4,200.4.Estimated economic life of the machine is 5 years.5.Nash Company’s incremental borrowing rate is 8% a year. Snead’simplicit rate is unknown.Instructions:What is the present value of the minimum lease payments?Record the lease and first lease payment on Nash Company’s booksat the date of inception.Record the first year’s depreciation on Nash Company’s books(assume straight-line).Record the interest payable on Nash’s books at December 31,2017.