I didn't put C1 and C2 on here because they are the same format at B1 and B2. Please walk through your answers so I can understand how you got them!

On January 1, 2019, Carey Inc. entered into a noncancelable lease agreement, agreeing to pay $5,857 at the end of each year for 2 years to acquire a new computer system having a market value of $9,900. The expected useful life of the computer system is also 2 years, and the computer will be depreciated on a straight-line basis with no salvage value. The Interest rate used by the lessor to determine the annual payments was 12%. Under the terms of the lease, Carey has an option to purchase the computer for $1 on January 1, 2023. See Table 6-5. (Use the appropriate factor by clicking on the Table link.) Required: a. Should Carey Inc. account for this lease as a financing lease or an operating lease? b. Prepare the horizontal model and record the journal entry that Carey Inc. should make on January 1, 2019. (Hint First determine the present value of future lease payments.) c. Prepare the horizontal model and record the journal entry that Carey Inc. should make on December 31, 2019, to record the first annual lease payment of $5,857. (Hint. Based on your answer to part b, determine the appropriate amounts for interest and principal.) Indicate the financial statement effect. d. What expenses (include amounts) should be recognized for this lease on the income statement for the year ended December 31. 2019? e. The accounting for an asset acquired under a capital lease Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required C1 Required C2 Required D Required E Prepare the horizontal model that Carey Inc. should make on January 1, 2019. (Hint: First determine the present value of future lease payments.) (Use amounts with + for increases and amounts with - for decreases. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Income Statement Balance Sheet Liabilities Assets + Stockholders' Equity- Net Income = Revenues Expenses + = Required A Required B1 Required B2 Required C1 Required C2 Required D Required E Record the journal entry that Carey Inc. should make on January 1, 2019. (Hint: First determine the present value of future lease payments.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round up your answer to the nearest ten dollars. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) View transaction list View journal entry worksheet General Journal Debit Credit No 1 Event 1 9,900 Right-of-use asset Lease liability 9.900 Required A Required B1 Required B2 Required C1 Required C2 Required D Required E What expenses (include amounts) should be recognized for this lease on the income statement for the year ended December 31, 2019? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Income statement (Partial)