Cleveland Inc. leased a new crane to Abriendo Construction under a 5-year noncancelable contract starting January 1, 2014. Terms of the lease require payments of $33,000 each January 1, starting January 1, 2014. Cleveland will pay insurance, taxes, and maintenance charges on the crane, which has an estimated life of 12 years, a fair value of $240,000 and a coast to Cleveland of $240,000. The estimated fair value of the crane is expected to be #45,000 at the end of the lease term> NO bargain-purchase or renewal options are included in the contract. Both Cleveland and Abriendo adjust and close books annually at December 31. Collectability of the lease payments is reasonably certain, and no uncertainties exist relative to unreimbursable lessor costs. Abriendo's incremental borrowing rate is10%, and Cleveland's implicit interest rate of 9% is known to Abriendo. Instructions Identify the type of lease involved and give reasons for your classification. Discuss the accounting treatment that should be applied by the both the lessee and the lessor. Prepare all the entries related to the lease contract and lease assed for the year 2014 for the lessee and lessor, assuming the following amounts. Insurance %500. Taxes $2,000. Maintenance $650. Straight-line depreciation and salvage value $15,000. Discuss what should be presented in the balance sheet, the income statement, and the related note of both the lessee and the lessor at December 31, 2014