Assignment:1 LP leasing company signs an agreement on January 1, 2015, lease equipment to JP Company. The following information relates to this agreement: i.The term of the non-cancelable lease is 5 years with no renewal option. The equipment has an estimated life of 5 years. ii. The fair value of the asset at January 1, 2015 is 80,000 iii. The asset will revert to the lessor at the end of the lease term. At which time the asset is expected to have a residual value of 7,000, none of which is guaranteed. iv.JP company (Lessee) assumes direct responsibility for all executory cost, which include the following annual amount: a) tk 900 to Rocky mountain insurance Company cost b) tk 1,600 to local county for property tax v.The agreement requires annual lease rental payments of tk 18,143 to the lessor beginning on January 1, 2015 vi. The lessee's incremental borrowing rate 12% and the lessor's implicit rate is 10% and known to lessee. (PVIF of Annuity Due at 5yrs 10% rate is 4.17) vii.Lp company uses straight line depreciation method Requirements: 1. Whether it is a capital lease or not? 2. Prepare Amortization Schedule in the books of Lessee 3. Prepare all the necessary journal entries in the books of Lessee 4. prepare the Amortization schedule for the Lessor and required journal entries