Blossominc. leased a new crane to Pina Construction under a 5-year, non-cancelable contract starting January 1, 2020. Terms of the lease require payments of $45,500 each January 1, starting January 1, 2020. The crane has an estimated life of 7 years, a fair value of $220,000, and a cost to Blossom of $220,000. The estimated fair value of the crane is expected to be $45,000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Blossom and Pina adjust and close books annually at December 31. Collectibility of the lease payments is probable. Pina's incrementa borrowing rate is 9%, and Blossom's implicit interest rate of 9% is known to Pina. Click here to view factor tables. Your answer is correct. Identify the type of lease involved and give reasons for your classification. The lease is classified as an operating lease eTextbook and Media List of Accounts Your answer is partially correct. Prepare all the entries related to the lease contract and leased asset for the year 2020 for the lessee and lessor, assuming Pina uses straight-line amortization for all similar leased assets, and Blossom depreciates the asset on a straight-line basis with a Prepare all the entries related to the lease contract and leased asset for the year 2020 for the lessee and lessor, assuming Pina uses straight-line amortization for all similar leased assets, and Blossom depreciates the asset on a straight-line basis with a salvage value of $13,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25125 and the final answer to O decimal places e.g. 58,972.) Date Account Titles and Explanation Debit Credit Lessee's Entries 1/1/20 Leased Asset 192874 Lease Liability 192874 (To record lease.) 1/1/20 Lease Expense 45500 Cash 45500 (To record lease payment.) 12/31/20 Interest Expense 51839 Amortization Expense 38575 Lease Liability 13264 (To record interest and amortization expense.) Lessor's Entries 1/1/20 (To record the receipt of payment.) 12/31/20 Depreciation Expense (To record depreciation.) 12/31/20 Lease Revenue (To record lease revenue.)