Another Lessor example Unanswered Laredo Leasing Corporation is the largest lessor in South Texas. Laredo Rentit needs to acquire additional trucks to meet local demand. Laredo Rentit signs a 3-year non- concealable lease for new trucks with an annual payment of $28,026.12 due at the end of each year. The trucks have a 15-year useful life and Laredo Rentlt guarantees the trucks will have a residual value of $25,000, while the expected residual value is $20,000. Laredo Rentit has a marginal borrowing cost of 5% while Laredo Leasing has used a 4% implicit interest rate with pricing the contract. Round your answers to the nearest penny. Demonstrate how Laredo Leasing arrived at the annual lease payment. Conduct the 5 tests to identify whether this lease will be classified as a Finance lease or as an Operating lease. Clearly state your conclusion. Prepare the journal entries for the first 2 years of the lease