Lahirr Leasing purchased a single-engine plane for $470,000 and leased it to Red Baron Flying Club for its falr value of $828,269 on January 1, 2024. Note: Use tables, Excel, or a financlal calculator. (FV of \$1, PV of \$1, FVA of \$1, PVA of \$1, FVAD of \$1 and PVAD of \$1) Terms of the lease agreement and related facts were a. Eight annual payments of $145,000 beginning January 1,2024 , the beginning of the lease, and on each December 31 through 2030. Red Baron knows that Lahirl Leasing's Implicit interest rate was 11%. The estimated useful life of the plane is elght years. Payments were calculated as follows: Amount to be recovered (fair value) Lease payments at the beginning of each of the next eight years: ($828,2695.7122) $828,269 $145,000 *Present value of an annuity due of $1:n=8,l=11% b. Red Baron's Incremental borrowing rate is 12%. c. Incremental costs of consummating the completed lease transaction Incurred by Lahirl Leasing were $22,652. Requlred: 1. How should this lease be classified (a) by Lahir Leasing (the lessor) and (b) by Red Baron (the lessee)? 2. Prepare the approprlate entries for both Red Baron Flying Club and Lahiri Leasing on January 1, 2024. 3. Prepare an amortization schedule that describes the pattern of Interest expense over the lease term for Red Baron Flying Club. 4. Prepare the approprlate entrles for both Red Baron and Lahirl Leasing on December 31, 2024 (the second lease payment). Both companies use straight-line depreclation or amortization. 5. Prepare the appropriate entrles for both Red Baron and Lahirl Leasing on December 31, 2030 (the final lease payment). Complete this question by entering your answers in the tabs below. How should this lease be classified (a) by Lahiri Leasing (the lessor) and (b) by Red Baron (the lessee)? Note: Round your intermediate and final answers to nearest whole dollar