lt looul the treatment of this lease, and what are the lessor and lessee journal entries for the first year? #2 Lam Dairy leases its milking equipment from Sanyal Finance Company under the following lease terms. Fivncin Lease The lease term is 10 years, noncancelable, and requires equal rental payments of $62,200 due at the beginning of each year starting January 1, 2017 The equipment has a fair value and cost at the inception of the lease (January 1, 2017) of $400,926, an estimated economic life of 10 years, and a residual value (which is guaranteed by Lam Dairy) of $22,700 1. 2. 3. The lease contains no renewable options, and the equipment reverts to Sanyal Finance 4, Lam Dairy's incremental borrowing rate is 12% per year. The implicit rate is 10% and is 5. Lam Dairy depreciates similar equipment that it owns on a straight-line basis. Company upon termination of the lease. unknown to Lam Dairy. Collectability of the payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. 6. Present the lessor and lessee journal entries for the first two years