1. ABC Co. (lessee) signs a lease agreement on July 1st, 2018 to lease equipment from Daly Leasing Company (lessor). The following data relates to this lease agreement: () The term of the non-cancelable lease is 4 years, with no renewal option. The asset will return to the lessor at the end of a lease term. (2) Payments of 195,989 are due on July 1st of each year. The first payment is made at the inception of this lease. This payment includes $300 for propery tax (executory costs). (3) The fair value of the equipment on July 1st, 2018 is $700,000. The useful economic life of this equipment is 6 years, with no salvage value. (4) ABC's incremental borrowing rate is 8% per year. The implicit rate used by Daly Leasing Company in computing the lease payments is 8%. (6) Collectbility of the payments is reasonably predictable, and there are no important uncertainties surrouding the costs yet ot be incurred by the lessor. Required: (a) Indicate the type of lease ABC has entered into and if individual criteria are met. You need to include your present value calculatoin for miminum lease payments