Accounting for Lease Agreements - both parties (24 points) 4. On January 1, 2017, Astros, Inc. engaged in a lease agreement with Nationals Manufacturing for the use of equipment with an estimated economic life of five years. The term of the lease is four years and requires four annual payments of$100,000 beginning January 1, 2017 and continuing on December 31 of every year from 2017 to 2019. The equipment is not specialized. Nationals Manufacturing incured $5,000 in costs related to obtaining credit reports on Astros and closing the lease arrangement. Astros incurred no initial direct costs. The equipment cost Nationals $350,000 to manufacture and the fair value ofthe equipment is $379,760. The lease terms follow: Astros guarantees that the equipment returned to Nationals on December 31, 2020 will be worth $30,000 There is no transfer of the asset at the end of the lease tem and no purchase option The rate implicit in the lease is 8%, and is known to Astros Required: a. What type of lease has each party signed? Explain in terms of the new US GAAP standard (ASC 842). (2 pts) b. Prepare all of the 2017 jounal entries for both the lessor and lessee. (10 pts) c. Prepare all of the 2020 joumal entries for both the lessor and lessee, assuming that the fair value of the equipment at the end of the lease (12/31/20) is $30,000. How would your answer differ if the equipment's fair value is $28,000 at the end of the lease? (4 pts) d. Now assume that the $30,000 residual value is estimated by Nationals and is not guaranteed. Answer parts a., b., and c. above under this for Nationals (Lessor) only. (8 pts