Can I have help with this one?

Interstate automobiles corporation leased 40 vans to VIP Transport under a four-year noncancelable lease on January 1, 2021.

A) Equal annual lease payments of $300,000 are due on January 1, 2021, and there after on December 31 each year. The first payment was made on January 1, 2021. Interstate's implicit interest rate is 10% and known by VIP.

B) Vip has the option to purchase all of the vans at the end of the lease for a total of $290,000. The Van's estimated residual value is $300,000 at the end of the lease term and $50,000 at the end of 7 years, the estimated life of each van.

C) Vip estimates the fair value of the vans to be $1,260,000. Interstate's cost was $1,050,000.

D) Vip's incremental borrowing rate is 9%.

E) VIP will pay the executory costs (maintenance, insurance, and other fees not included in the annual lease payments) of $1,000 per year. The depreciation method is straight line.

Required:

if the vans estimated residual value $300,000 at the end term how should beliefs be classified by VIP? By Interstate?

if the vans estimated residual value $400,000 at the end term how should beliefs be classified by VIP? By Interstate?

Regardless of your response to previous requirements, depose VIP recorded the lease on January 1, 2001, as a finance lease in the amount of $1,100,000 and that a bargain purchase option exists. What would be the appropriate journal entries related to the finance lease for the second lease payments on December 31, 2021?