I. Stark Corp. is a manufacturer of truck trailers. On January 1, 20x1, Stark leases twenty trailers to Rear Company under a six-year lease agreement. The following information about the lease and the trailers is provided. - Equal annual payments that are due on December 31 each year provide Stark with an 8% return on investment (Rears borrowing rate is also 8%). - Titles to the trailers pass to Rear at the end of the lease. - The fair value of each trailer is $60,000. The cost of each trailer to Stark is $54,000. Each trailer has an expected useful life of nine years. - Collectibility of the lease payments is reasonably predictable and there are no important uncertainties surrounding the amount of costs yet to be incurred by Stark. a) What type of lease is this for the lessee (Rear) and lessor (Stark)? Explain. b) Calculate the annual lease payment. c) Prepare a lease amortization schedule for the lease term (use the Excel). d) Prepare all journal entries for the lessor and lessee for 20x1 and 20x2.