Instructions: A What is the type of this lease to Adliya Company lixplain why B. Prepare an amortization schedule through the years 2021 and 2022. that would be able for the C. Prepare the necessary journal entries in the books of Adliya Company darmo 2020 1,2071, with expenses related to this lease Assume that the lessee's a scoatung period ends on December 1 For the toolbar, press ALT+F10 ( POR ALTEN F10 M) AIXGQ Arial 10p 10 On January 1, 2020, Adliya Company is a 4 year base contract to a quest from Our Company The According to the agreement, the required to make a rental pwynt of 10.000 from 1.100 provision 1. The estimated economie life of the equipment is 5 years 2. At the inception of the lease the fair value of the equipment $1,680,000 3. Each annual rental payment schades $28.975 44 of executory costs relate to property taxes 1 The lessee's incremental borrowing rate is 10% The lesson's mphit rate 86 and is known to the 5 At the end of the losse term the equipment will revert to the lessor, and at that time the equipment is expected to have good 6 Both, Adliya Company and Gulf Company, use the straight line method for depreciation Additional information: The present value of an Ordinary Annuity of 51 and the present value of an Anunty Doe of $1 for Speedster 98 and 10ti v as follows The present value of an Annuity Due of $1 Period 8% 946 1.00000 1.00000 192593 1.91743 2.78326 2.75911 3.57710 3.53129 4.31221 4.23972 104 1.00000 1.90909 273554 3.48685 416987 1 2 3 4 5