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Wildhorse Co. leased machinery from Young, Inc. on January 1, 2017. The lease term was...

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Wildhorse Co. leased machinery from Young, Inc. on January 1, 2017. The lease term was for 8 years, with equal annual rental payments of $5,200 at the beginning of each year. In addition, the lease provides an option to purchase the machinery at the end of the lease term for $3,000, which Wildhorse is reasonably certain it will exercise as it belleves the fair value of the machinery will be at least $5,000. The machinery has a useful life of 10 years and a fair value of $45,000. The implicit rate of the lease is not known to Wildhorse. Wildhorse's incremental borrowing rate is 9%. Prepare Wildhorse's 2017 journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to o decimal places, e.g. 5,25. Date Account Titles and Explanation Debit Credit (To record lease liability) (To record lease payment) 12/31/17 (To record interest expense) 12/31/17 Version 4.24

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