Lisa Company as lessor enters into a lease agreement with Lazy Company, on 1 January 2020, to give the right of use of its equipment to Lazy. The following data are relevant to the lease agreement: 1. The fair value of the equipment on 1 January 2020 is $3,600,000 and cost to Lisa Company is 2,500,000. The equipment has an economic life of 6 years with no salvage value. 2. The term of the noncancelable lease is 5 years. Annual payment is due on January 1 of each year. There is a guaranteed residual value of $300,000 at the end of the least term, where Lazy estimates the expected residual value at the end of lease term to be $250,000. 3. Lazy depreciates similar machinery it owns on the sum-of-the-years-digits basis. 4. Lisa used an implicit rate of 6% in computing the lease payments. Lazy's incremental borrowing rate is 6% per year. Both Lisa Company and Lazy Company have financial year ended 31 December. Required (a) Compute the annual lease payment required by Lisa Company on January 1 each year. (3 marks) (b) Discuss and determine the type of lease Lisa Company has entered into. (3 marks) (c) Prepare an amortization schedule that is suitable for Lisa for the lease term. (6 marks) (d) Prepare all the required journal entries for Lisa, the lessor in 2020. (6 marks) (e) Compute the lease liability and the amount capitalized for right-of-use asset by the lessee, Lazy. (2 marks) (f) Prepare all the required journal entries for the lessee, Lazy Company on 31 December 2020. (4 marks)