Bogart Corp. is a company whose shares are publicly traded on the TSX Exchange that has a December 31 fiscal year end. On August 1, 2020, Bogart entered into a nine-year non-cancellable lease with Bacall Corp. for equipment with an estimated useful life of 11 years and a fair value of $4,500,000. Bogart's incremental borrowing rate is 8%, and the implicit rate used by Bacall is 7% and known by Bogart. Bogart uses the straight-line method to depreciate assets. The lease contains the following provisions: 1. Annual payments of $637,500 (including $622,096 to lease the equipment and $15,404 for property taxes), payable on August 1 of each year, with the first payment due August 1, 2020. 2. A bargain purchase option under which Bogart Corp. can pay Bacall Corp. $300,000 to acquire the equipment at the end of the lease. The actual residual value is expected to be $450,000 making it likely that Bogart will exercise this option. Instructions a) Prove the lease payment amount by calculating the present value of the Bogart's lease payments. Round to nearest dollar. - PV factor for annuity due of 9 annual payments at 7% annual rate, 6.971299; PV factor for $1 due in 9 years at 7% annual rate, 0.543934 ; - PV factor for annuity due of 9 annual payments at 8% annual rate, 6.746639 ; PV factor for $1 due in 9 years at 8% annual rate, 0.500249 . b) How should Bogart Corp. account for the leased equipment and the related lease obligation? Explain why. c) Prepare the journal entries that Bogart would record from August 1, 2020 until August 1, 2021. Show support for your calculations. d) What amounts would Bogart include on its 2020 Income Statement related to the equipment lease. e) Prepare Bogart's 2020 balance sheet presentation for items related to the lease. f) Prepare Bogart's 2020 cash flow statement presentation for items related to the lease. Assume Bogart uses the direct method on when preparing its cash flow statement and that g) Would your answer to "b" be different if Bogart was a private company using ASPE? if so, describe how