10. Big Green Co. uses leasing as a secondary means of selling its products. The company contracted with Merritt Construction Corporation to lease a machine with an economic life of 12 years to be used by Merritt Construction Corporation in its operations. The fair value of the asset at the inception of the lease was $450,000; it cost Bis Green Co. $396,000 and is carried as equipment at that value. Lease payments of $49,418 are to be made by Merritt Construction Corporation at the beginning of each of the eight years of the lease. Big Green Co.'s implicit interest rate is 7% per year which is known to Merritt Construction Corporation. Big Green Co. will depreciate the equipment on a straight-line basis (assume no salvage value). Time value of money factors at 7% Future Value of 1 Present Value of 1 Present Value of Ordinary Annuity of 1 Present Value of Annuity Due of 1 7 years 1.60578 .62275 5.38929 5.76654 8 years 1.71819 58201 5.97130 6.38929 Required a. How would Big Green Co. classify the lease? b. What balances (account titles, amounts) appear on Big Green's balance sheet at the end of the first year, related to the lease? Round your final answers to the nearest whole dollar c. What balances (account titles, amounts) appear on Big Green's income statement for the first year, related to the lease? Round your final answers to the nearest whole dollar