1. Presented below are two different transactions that occurred for RAGS Inc. in 2020. Assume that all lease contracts start on January 1,2020. RAGS will not receive the title to properties leased during or at the end of the lease term. Type of property Yearly rental Lease term Estimated economic life Present Value of the Lease rental payments Lessor Tytan Co. Hedgel Co. Truck $5000 6 Years Equipment $4200 4 Years 7 Years 7 Years $26,000 $13,000 Instructions: a. How should the lease transactions with Hedgel Co. recorded in 2020?? b. How should the lease transaction with Tytan Co. be recorded in 2021??