4. Lessee leases asset from Lessor. Fair market value of the asset currently is $500,000. Asset is new and has a remaining economic life of 10 years, Lease term is for 7 years, implicit rate on the lease is 12% and this rate is known by Lessee. Lessor believes asset will be worth $150,000 at end of lease term (i.e., residual value-150,000) and none of the residual value is guaranteed. Lease payments of 94,691 are made annually at year-end. Lease inception date is January 1. a. Assume cost of leased asset FMV of the asset at lease inception. Classify the lease, book the lease (both Lessee and Lessor entries), and prepare journal entry (both Lessee and Lessor entries) for the first lease payment due December 31. b. Assume Lessor's cost of lease asset 400,000. Classify the lease, book the lease (both Lessee and Lessor entries), and prepare journal entry (both Lessee and Lessor entries) for the first lease payment due December 31