A-evaluate the criteria for classification of the lease for King Finance.B-prepare the journal entries for the lessor for the following dates1/1/2020C- what would have been the amount of the initial lease receivable by the lessor if the residential value if 50000 is guaranteed by the lessee?

Problem #1 Use this information to answer the next three questions Wayne Bro. leases its equipment from King Finance Company under the following lease terms. 1. The lease term is 10 years, non-cancelable, and required rental payment of $30,300 due at the beginning of each year starting January 1, 2020. 2. The equipment has a fair value at the commencement of the lease (January 1, 2020) of $242,741 and a cost of $180,000 on King Finance's books. It also has an estimated economic life of 15 years and an expected residual value of $45,000. Wayne Bro. does not guarantee a residual value of $50,000. 3. The lease contains no renewal options, and the equipment reverts to King Finance upon termination of the lease. The equipment is not of a specialized use. 4. Wayne Bro.'s incremental borrowing rate is 10% per year. The implicit rate is 8%. 5. Wayne Bro. depreciates similar equipment that is owns on a straight-line basis. 6. Collectibility of the payments is probable. PV Annuity Due PV Ordinary PV Single Sum Annuity 8%, 10 periods 7.24689 6.71008 46319 10%, 10 periods 6.75902 6.14457 .38554