Determining Type of Lease and Subsequent Accounting On January 1, 2013, Ballieu Company leases specialty equipment with an economic life of 8 years to Anderson Company. The lease contains the following terms and provisions: The lease is non cancelable and has a term of 8 years. The annual rentals are $33, 800, payable at the beginning of each year. The interest rate implicit in the lease is 14%. Anderson agrees to pay all executor costs and is given an option to buy the equipment for $1 at the end of the lease term. The cost of the equipment to the lessor is $145,000, and the fair retail value is approximately $ 178, 700. The lessor incurs no material initial direct costs. The collectability of the rentals is reasonably assured, and there are no important uncertainties surrounding the amount of un reimbursable costs yet to be incurred by the lessor. The lessor estimates that the fair value is expected to be significantly greater than $1 at the end of the lease term. The lessor calculates that the present value on January 1.2013 of 8 annual payments in advance of $33, 800 discounted at 14% is $178, 744.71 (the $1 purchase option is ignored as immaterial). Link for tables: Prepare al the journal entries for Ballieu for the years 2013 and 2014. For compound entries. If an amount box does not require an entry, leave it blank