4. ATP Corp. signs a lease agreement dated January 1, 2016 with Glly inc for equipment. The lease terms provisions and related events are as follows I- The lease term is 5 years. The lease is noncancelable and requires equal payments of $68,800 at the end of each yeor. 2. The lease does not contain any renewal, transter of ownership or bargain purchase option 3- The equipment has a fair value of $275,000, and does not have a residual value. The eco economic useful life of the asset is 6 years y at the end of each year 4 ATP Corp agrees to pay executory costs for maintenance) of $1,000 direct 5- The implicit interest rate for the lease is 12% and ATP is aware of the rate. 6 ATP uses straight-line depreciation of simillar equipment 7- The PV factor for an ordinary annuity at 12% for 5 periods is 3.60478. Required a. Using the four criteria required for capitalization determine whether the lease is an operating lease or a lease. capital b. Calculate the amount of the asset and liability for the lessee at inception of the lease Prepare all journal entries for 2016 and 2017. (A partial amortization schedule for lease payments will be necessary.) c