7. Eubank Company, as lessee, enters into a lease agreement o The following data are relevant to the lease agreement: n July 1, 2018, for equipment 1. The term of the noncancelable lease is 4 years, with no renewal option. Payments of $978,446 are due on July 1 of each year 2. The fair value of the equipment on July 1, 2018 is $3,500,000. The equipment has an economic life of 6 years with no salvage value. s basis. 3. Eubank depreciates similar machinery it owns on the sum-of-the-years'-digit 4. The lessee pays all executory costs. nk's incremental borrowing rate is 10% per year. The lessee is aware that the lessor rate of 8% in computing the lease payments (present value factor for 4 periods 5. Euba used an implicit at 8%, 3.57710, at 10%, 3.48685). Instructions (a) Indicate the type of lease Eubank Company has entered into. Explain you Answer using the (b) Lessee Lease Criteria. Prepare the journal entries on Eubank's books that relate to the lease agreement for the following dates: (Round all amounts to the nearest dollar. Include a partial amortization schedule.) 1. July 1, 2018. 2. December 31, 2018. 3. July 1, 2019. 4. December 31, 2019