LEASE PROBLEME On January 1, 2018, Cysco Co. leased a machine from FryScale under a nine-year lease contract. The lease contract specifies beginning-of-period annual payments of $25,000 beginning January 1,2018. The fair value of the machine is $176,000 and its carrying amount on FryScale's books is $150,000. The machine is expected to have a useful life of 12 years with no guaranteed residual value. FryScale is charging Cysco a 10% interest rate. REQUIRED: How does the Lessee classify this lease? Make the necessary entries pertaining to this lease on January 1,2018 and December 31, 2018 Assume the same facts as in the problem, except that the life of the asset is 13 years now. (NOTE: you cannot just change the useful life of an asset to get a different accounting treatment al I'm doing here is asking you to assume a different useful life -assume it really does have a different useful life-so that you can see the different accounting.) Accordingly, lessee accounts for the lease of the vehicle as an Operating lease. Make the necessary entries for January 1, 2018 and December 31, 2018. 1. 2. 3. Fill in the following table: Effect on Lessee's Earnings: Total Expense