Indigo Corporation leased equipment to Teal Mountain, Inc. on January 1, 2020. The lease agreement called for annual rental payments of $1,290 at the beginning of each year of the 3-year lijase. The equipment has an economic useful life of 7 years, a lair value of $9,700, a book value of $7,700, and indigo expects a residual value of $7,200 at the end of the lease term. Indigo set the lease payments with the intent of earning a 6% return, though Teal Mountain is unaware of the rate implicit in the lease and has an incremental borrowing rate of 8%. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view factor tables: (For calculation purposes, use 5 decimal places as displayed in the factor table provided) Determine the nature of the lease to both Indigo and Teal Mountain. The lease is a/3 an lease to Teal Mountain. The lease is a/an lease to Indigo. Prepare all necessary journal entries for Teal Mountain in 2020. (Credit occount titles are outomatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, es. 5,275. Record journal entries in the order presented in the problem.) How would the measurement of the lease Fability and right-of -use assot be affected if as a result of the lease contract, Teal Mountain was also required to pay $600 in commissions, prepay $700 in addition to the first rental poyment, and pay 5150 of insurance each year? (Round answers to 0 decimal places, es 5,275 ) Lease labitity Right-of-use-asset Suppose, Instead of a 37year leate term. Teal Meantain and indipo agree to a one- yeir lease with a owment of 51,290 at the itart unsunt is entered, Do not indent maniallyd