1. Define the Two Classification of Leases.

a. Give a transaction problems for each Finance lease and Operating lease.

b. Journalized the effect of the transaction problem on the part of the lessor and the lessee with description.

c. Provide the amortization table for depreciation and interest computation based on present value or fair value of your transaction problem.

d. Journalized the depreciation and interest expense on the first year of leasing.