Exercise 1A-14 Sunland Company leases a building to Splish Brothers, Inc. on January 1, 2017. The following facts pertanto the green 1. The lease term is 4 years, with equal annual rental payments of $5.827 at the beginning of each year 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase option and the sets of a specialized tre 3. The building has a fair value of $23.500, a book value to Sunland of $16.500, and a useful We of years 4. At the end of the lease term, Sunland and Splish Brothers expect there to be an unguaranteed reale of 1.125 5. Sunland wants to earn a return of the lease, and collectibility of the payments is probable Thiet knowny Splash Brothers Assume that Splish Brothers was unaware of the implicit rate used in the lease by Sunland and has an increment borrowing rate of 10 Click here to view the factor table How would Sunland (lessor) and Splish Brothers (lessee) classify the lease? Sunland would classify the lease as a Splish Brothers would claudy the lease as a How would Sunland initially measure the lease receivable, and how would Splish Brothers initially a re the leasehability and right of use a splayed in the factor table provides and walanswers to decinal 5,225) Sunland Lease receivable Present value of lease pay Splish Brothers Lease Liability/Right of Use Asset Click if you would like to Show Work for this question Show Work