Can you please help me with this assignment in the attached file.

ACCT 3040 Name 1) ABC Inc. leased equipment from Tommy Inc. on 12/31/2006. The lease is noncancelable. The lease agreement specified annual payments of $60,894 beginning with the first payment at the inception of the lease, and each December 31 through 2008. No executory costs are included in the annual payment. The leases gives ABC the option to purchase the equipment on 12/31/2009 for 22,000 when the fair value is expected to be 30,000. If the purchase option is not exercised, the equipment will be returned to Tommy. Additional information: Fair value of the leased property on 12/31/2006: $185,000 Estimated economic life of the property as of 12/31/2006: 5 years Salvage value at the end of its economic life: 0 Cost of the equipment for the lessor: 160,000 Lessee's incremental borrowing rate equals or exceeds the lessor's implicit rate and implicit rate in the lease is 9%. Collectibility is reasonably assured and the lessor has substantially completed performance. Requirement 1: Calculate the present value of minimum lease payment. Requirement 2: If this is a capital lease for the lessor, is it a sales-type capital lease or a direct financing capital lease? Requirement 3: Record the JE separately for the lessee and lessor on 12/31/2006 and 12/31/2007. Requirement 4: Complete the following items for lessee. 12/31/2007 12/31/2006 Leased equipment, net Lease payable Interest expense Depreciation expense Requirement 5: Complete the following items for lessor. 12/31/2007 12/31/2006 Lease receivable Interest revenue 2) On 1/1/2005, JK Inc. (lessee) and EQ, Inc. entered into a non-cancelable lease that does not transfer title and does not contain a purchase option. The lease covers 3 years of the equipment's 5-year economic life. The annual rental payments of $40,000 include executory costs of 3,500 and are due at the beginning of each of the three years. Estimated residual value is 4,300. The asset will be returned to the lessor on 12/31/2007. Additional information: Fair value of the leased property on 1/1/05: $107,000 Estimated economic life of the property as of 1/1/05: 5 years Cost of the equipment for the lessor: 93,500 Lessee's incremental borrowing rate equals or exceeds the lessor's implicit rate and implicit rate in the lease is 8%. Collectibility is reasonably assured and the lessor has substantially completed performance. Requirement 1: Calculate the PVMLP under the following alternative situations: a) Lessee guarantees the $4,300 residual value. PVMLP = b) Lessee does NOT guarantee the $4,300 residual value. PVMLP = Requirement 2: Determine accounting classification under the following alternative situations: a) Lessee guarantees the $4,300 residual value. an Operating or a Capital lease b) Lessee does NOT guarantee the $4,300 residual value. an Operating or a Capital lease Requirement 3: Record the JE separately for the lessee on 1/1/05 under the following alternative situations: a) Lessee guarantees the $4,300 residual value. b) Lessee does NOT guarantee the $4,300 residual value