Huffman Company leases a machine from Lincoln Corp. under an agreement which meets the criteria to be a for lease for Huffman. The six-year lease requires payment of $87,000 at the beginning of each year. The incremental borrowing rate for the lessee is 10%; the lessor's implicit rate is 8%, and is known by the lessee. The present value of an annuity due of 1 for six years at 10% is 4, 79079. The present value of an annuity due to of 1 six years at 8% is 4.99271. The life of the machine in seven years and will be returned to the lessor at the end of the lease. a) Why is this a capital lease? b). Prepare a lease amortization schedule for the first two years c). Prepare the lessee's journal entries for the first two years