After completing a Bachelor of Business Administration, you joined Foggo Commercial Appliances Ltd. (FCAL), a manufacturer of commercial laundry equipment On January 1, 2021, FCAL leased equipment manufactured at a cost of $2,095,000 to Launder It Ltd. (LIL), a provider of laundry services to day spas, salons, restaurants, etc. The equipment is expected to have a 10 year useful life with no residual value. According to the lease agreement, the lease has a 10 year term and requires annual payments of $355,000 beginning January 1, 2021. Based on the interest rate implicit in the lease of 10% per annum, the present value of the minimum lease payments is equal to the $2,400,000 fair value of the equipment. After a careful examination of LIL's audited financial statements, you do not anticipate difficulties collecting the lease payments. FCAL does not expect to incur any additional costs related to the lease. Before accounting for the lease, you intend to provide a DEFINITIVE recommendation regarding whether FCAL should classify the lease as a capital or operating lease based on a COMPLETE DISCUSSION of the guidance provided in ASPE Section 3065 Leases. You plan to provide detailed supporting calculations and round all amounts to the nearest dollar or whole percent (6 marks). Based on your recommendation, you intend to prepare the journal entries (in good form) necessary to account for the lease on January 1, 2021 ONLY. You plan to provide detailed supporting calculations and round all amounts to the nearest dollar