Jordan Co. and Palestine Ltd. sign a lease agreement dated January 1, 2021, that calls for Jordan Co. to lease an equipment to Palestine Ltd. beginning January 1, 2021. The terms and provisions of the lease agreement and other pertinent data are as follows. The term of the lease is ten years. The lease agreement is non-cancellable, requiring equal rental payments of $71,477.07 at the beginning of each year (annuity-due basis). The equipment has a fair value at the inception of the lease of $500,000, an estimated economic life of ten years, and no residual value. Jordan Co., in addition to the lease payment, collects from Palestine Ltd. a license fees of $4,000 per year, which are paid to a third party . The lease contains no renewal options. The equipment reverts to Jordan Co. at the termination of the lease. Palestine Ltd. incremental borrowing rate is 10 percent per year (discount rate). Jordan Co. and Palestine Ltd. depreciate similar equipment that they own on a straight-line basis. Jordan Co. sets the annual rental to earn a rate of return on its investment of 9 percent per year (discount rate). . 10 points Required 1- What type of lease is this lease (Operating or Financing)? Explain why? 2- Prepare the journal entry for lessor (Jordan Co.) and for the lessee (Palestine Ltd.) when they sign the contract on January 1, 2021. 3. Prepare the journal entry for when Jordan Co. received the lease payment on January 1, 2021 and January 1, 2022. (Jordan Co. uses calendar year basis for preparing the financial statements). 4- In case the lease doesn't qualify as a financing lease and Jordan Co. classified it as an operating lease. What will be the journal entries on January 1, 2021 and Dec. 3, 2021? W Your