DIUCourXluCour:X|uC0urXIUCourixluCounxluiur'xluCourxluCour'XIUCOUrX G (D File | C:/Users/maggi/Downloads/2023-04-23%2021-22.pdf E3, Import favorites ExpressVPN Series V Draw @- B McAfee Security D LastPass passworc... M Gmail a YouTube 2' Maps Read aloud - + 6-) 2 off; Q CE! PROBLEM m A: On Dec 31, Year 1. Lessee inc, leases equipment from Lessor Corp, [or an 8-year lease term for $28,000 annual amounts to be paid. at the beginning wl each year. The lease is noncancelable, The useful life of the equipment is 10 years The equipment Will he returned to Lessur Corp. at the end of the 5 years. The equipment is not specialized, so could be leased out to someone else at the end oi this lease. The guaranteed residual value at the equipment at the end of 5 years is $20.01\"). However, the Lessee exgects the residual value at the equipment to only be $15,500 at the end of 8 years. The cost of the equipment to the Lessor was $170,000 and at the beginning of the lease has a fair value ol$195mt1 The Lessor's implicit interest rate in the lease is 9% and this interest rate is known by the Lessee Initial direct costs (legal fees) paid by the Lessee to set up this agreement cost $750 Collectibility of the lease payments by the Lesser is reasonably assured Both Lessee and Lessor ordinarily use the straight-line method tor depreciation. b What are the inputs into the app to determine present value lor determining Lease Liability? (Label them.) What is that present value? a. What are the inputs into the app tn determine present value for the 90% test? (Be sure to label them.) What is that present value? c, From the Lessee'5 standpoint, what type at lease is this? Why? List the live criteria in your answer and whether each was met. Ezozsx Humx|+ {'5 % air\": Q 9 lf-B .2533 Cours X * Cours X Cours X Cours X Cours X Cours X Cours X Cours X Cour X PDE 2023 X *Hom X + X File | C:/Users/maggi/Downloads/2023-04-23%2021-22.pdf . . . [. Import favorites Express VPN Series McAfee Security LastPass password.. M Gmail YouTube Maps Draw | Read aloud + 3 of 5 2 0D Q 6 9 9 7 (continued, next page) O d.. Prepare ALL journal entries that Lessee will make on its books on (a) December 31, Year 1 and (b) December 31, Year 2 and ( c) December 31, Year 3 Year 1 Year 2 Year 3 Date Accounts Debit Credit Debi Credit Debit Credit + o