ABC Company leased a manufacturing machine from KLM Company on 1/1/2020 for 10 years. The lease terms are as follows: a. KLM assumes 10% interest b. First rent is payable on 1/1/2020 and on 12/31 the remaining life of the lease. c. Estimated economic life of the machine is 10 years. d. Cost of the machine to KLM is $500,000. e. KLM wants to recover its investment and earns a 10% return. Use this PV table: Required: A. What type of lease is this for ABC and KLM? B. Calculate the annual rent. C. Make journal entries by both ABC and KLM for the first year (1/1/20 to 12/31/20). ABC Company leased a manufacturing machine from KLM Company on 1/1/2020 for 10 years. The lease terms are as follows: a. KLM assumes 10% interest b. First rent is payable on 1/1/2020 and on 12/31 the remaining life of the lease. c. Estimated economic life of the machine is 10 years. d. Cost of the machine to KLM is $500,000. e. KLM wants to recover its investment and earns a 10% return. Use this PV table: Required: A. What type of lease is this for ABC and KLM? B. Calculate the annual rent. C. Make journal entries by both ABC and KLM for the first year (1/1/20 to 12/31/20)