Classic Keys Corp. (CKC) is a merchandising company that specializes in selling high- end pianos to piano players and music aficionados. CKC has a year-end of December 31st and selected comparative balance sheet information for the company is shown below. As at Dec. 31, 2021 As at Dec 31, 2020 $24,307 3,265 43,304 500 $18,706 2,354 53,125 1,000 Current assets Cash Accounts receivable (net) Inventory Interest receivable Current liabilities Accrued liabilities Accounts payable Current portion of long-term debt Additional information: 1,986 5,621 12,000 5,342 26 18,000 Net income for fiscal year 2021 was $112,005 On Jan. 1, 2021, CKC purchased accounting software to organize their financial records. The software cost $5,000, is expected to be used for four years (as of Jan. 1, 2021) and has no residual value. As at Dec. 31, 2021, CKC reported $80,000 of PP&E and $40,000 of accumulated depreciation on PP&E on its balance sheet. As at Dec. 31, 2020, those amounts were $80,000 and $55,000, respectively. CKCs depreciates/amortizes all its assets using the straight-line method. Required: Based on the information above, answer the following TWO (2) questions pertaining to CKC. 1. Prepare a partial cash flow statement, showing the operating activities section only, for the year-ended Dec. 31, 2021. You do not need to prepare the investing or financing activities sections. (13 marks) 2. In 2021, CKC considered leasing a delivery truck to deliver pianos to customers rather than relying on a 3rd party transportation company. As per the lease agreement, CKC would not have the option to purchase the truck during the lease term, and the truck would have to be returned to the leasing company at the end of the 5-year lease. The present value of the lease payments was $85,000 and the fair market value of the truck was $93,500 at the time the lease was ready to be signed. The useful life of the truck was estimated to be 10 years. If CKC leased the truck, how should the lease be classified? Support your answer by connecting each lease classification criteria to a scenario fact above (don't just restate criteria)