2014, Lessor Inc. leased new equipment to Lessee 2) On January Corporation. The following infomation pertains to this lease. The tem of the non-cancelable lease is 6 years, with no renewal op The equipment revers to lessor Company at the termination of the lease. 2. Equal rental payments are due on January 1 of each year, beginning in 3. Lessee Company is required to pay 55,000 each year to Lessor far executory 4. The cost and fair value of the equipment to Lessor Inc. on January 1, 2014 was $150,000. 5. The equipment has an economic life of years, with an guaranteed residual value of S10.000. 6. Lessor Inc. set the annual rental to ensure an 11% rate of return, Lessee's incremental bomowing is 12%, and the implicit rate of the lessor is unknowa to Lessee Compa ably predictable, and no y lease payment important uncertainties sumound the amount of costs yet to be incurred by he lessor. Required a) Discuss the nature of this lease to Lessor and Lessee b) Make the necessary journal entries for Lessee Company for 2014 ecessary journal entries for Lessor Inc for Make the n 2014