Jensen Company on January 1, 2013, enters into a six-year noncancelable lease, with four renewal options of one year each (see provision #2 below) for equipment having an estimated useful life of 10 years and a fair value to the lessor, Loeb Corp., at the inception of the lease of $9,000,000. Jensen's incremental borrowing rate is 8%, the same rate that is implicit in the lease. Jensen uses the straight-line method to depreciate its assets and the asset is expected to have a residual value of $180,000. The lease contains the following provisions: Rental payments of $600,000 payable at the beginning of each six-month period. Terms for renewal of the lease for a period of four years after expiration of the initial lease term that are so favorable as to guarantee that Jensen will renew. A guarantee by Jensen Company that Loeb Corp. will realize $300,000 from selling the asset at the expiration of the lease. What should be considered the lease term? Support your answer. What kind of lease is this to Jensen Company? Support your answer. What are the minimum lease payments for Jensen Company? Support your answer. What is the present value of the minimum lease payments for Jensen Company? Support your answer. Prepare an amortization schedule for the lease through 1/1/2014 for Jensen Company. What journal entries would Jensen record during the first year of the lease (1/1/2013-1/1/2014)? Assume that Jensen has a calendar year end and makes appropriate adjusting entries at year-end. Assume that we wanted to record the lease on the books of Loeb Corp. All of the facts given in the problem apply. Additionally, although Loeb Corp. determines that collection of payments is predictable, it determines that there is significant uncertainty regarding the costs. What kind of lease is this to Loeb Corp? Support your answer. What journal entries would Loeb Corp record during the first year of the lease (1/1/2013-1/1/2014)? Assume that Loeb Corp has a calendar year end and makes appropriate adjusting entries at year-end