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Essаy #3 C-Cоmpаny оn Jаnuary 1, 2021, enters intо a nine-year noncancelable lease for standard use machinery having an estimated useful life of 10 years. The fair value of the machinery at the inception of the lease is $8,000,000. The implicit rate of borrowing rate is 5% and is known to the lessee. I-Corp manufactures the machinery at a cost of $6,000,000 and, when appropriate, uses the straight-line method to depreciate its assets. The lease contains the following provisions: A. Annual Lease payments of $1,071,924.42 are payable at the beginning of each lease period beginning on 1/1/2021. B. No purchase option is contained in the lease agreement. However, at the end of the lease term the Lessor will transfer the title to the machinery to the Lessee Requirements: 1) Prepare the appropriate journal entries (including adjusting entries) for both C-Corp and I-Corp during the first year of the lease term (1/1/2021 thru 1/1/2022). Both companies have calendar year-ends (i.e. 12/31/XX). 2) Describe and quantify the impact of the lease on C-Corp Balance Sheet as of 12/31/21 and the Income Statement for the year ended 12/31/21. Discussion should include identification of classification (e.g. current, operating, etc.) of amounts as applicable to each statement. NOTE: Due to rounding, your amortization table may have a small amount (i.e. < $1) after the last payment