peerless carpet corp leased a machine on january 1 2014 under a contract calling for six annual payments of 60000 on december 31 2014

Required
1. Determine the initial net liability created by the lease and the cost of the leased asset.
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.
3. Prepare the entry to record the leasing of the machine.
4. Prepare entries that would be made on December 31, 2015, 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 liability should appear on the December 31, 2015, balance sheet.