Landau Company, as lessee, enters into a lease agreement on July 1, 2021, for equipment. The following data are relevant to the lease agreement: 1. The term of the noncancelable lease is 4 years. Payments of $978,446 are due on July 1 of each year. 2. The fair value of the equipment on July 1, 2021 is $3,500,000. The equipment has an economic life of 6 years with no salvage value. 3. Landau depreciates similar machinery it owns on the straight line basis. 4. The lessee pays all executory costs. 5. The incremental borrowing rate is 10% per year. The lessee is aware that the lessor used an implicit rate of 8% in computing the lease payments (present value factor for 4 periods at 8%, 3.57710; at 10%, 3.48685). Instructions (a) Indicate the type of lease Landau Company has entered into and what accounting treatment is applicable. (b) Prepare the journal entries on Landau's books that relate to the lease agreement for the following dates: (Round all amounts to the nearest dollar.) 1. July 1, 2021. 2. December 31, 2021. 3. July 1, 2022. 4. December 31, 2022