A lessor and a lessee are negotiating the terms of a new lease with the lessee guaranteeing the residual value. What would be the impact on the amount of the annual payments under each of the following independent assumptions? In one phrase, explain why. a. decrease in estimated residual value b. decrease in interest rate c. increase in estimated fair market value at beginning of lease Net Income Impact of Leases. For each of the following journal entries, indicate the impact on net income (after closing entries): increase (I), decrease (D), or no effect (N). Lessor Lessee a. First payment if payments are at the beginning of each year (financing lease) b. Final entry or entries if the actual value at the end of the lease is less than the estimated residual value (guaranteed by lessee). Ignore interest. c. Depreciation entry d. Final entry or entries if the actual value at the end of the lease exceeds the estimated residual value (not guaranteed by lessee). Ignore interest e. Initial entry at the start of a direct-financing lease f. Second payment journal entry of a direct-financing lease g_ (payments are at the end of the year) O' 4