IV: Lessee Acer and lessor Bibby enter into a lease agreement on January 1, 2019, for equipment. The following data are relevant to the lease agreement: 1. The term of the non-cancelable lease is 5 years. Payments of $13,000 including executory costs of $3,000 are due at the end each year. 2. The equipment has an economic life of 10 years with a residual value of $10,500 at the end of the lease, but not guaranteed. The equipment has a carrying amount of $45,000 and fair value $50,000. 3. Lessee depreciates similar machinery it owns on the straight-line basis. 4. Lessee's incremental borrowing rate is 9% per year. Lessee is aware that the lessor used an implicit rate of 6% in computing the lease payments. The collectability of the lease payments is probable for the lessor. INSTRUCTIONS: (a) Indicate the type of lease to lessee Acer and lessor Bibby. (b) Prepare the journal entries on the books of lessee Acer and lessor Bibby through December 31, 2023. (c) What type of lease is this to lessee Acer and lessor Bibby if the residual value is guaranteed