Maving to anischer question will save this response Question 4 The following facts pertain to a lease between Star Bank Leasing (lessor) and JKL Printers (Lessee) for a piece of equipment: 1. The lease is for a five-year term, beginning on January 1, 2021. The economic life of the asset is five years. 2 The lessor's implicit interest rate is 8%; the lessee's incremental borrowing rate is 8% 3. The fair value of the Equipment is $145,000. The cost of the equipment to the lessor is $145,000. 4. The annual lease payment is $35,076.10; the first payment is due on January 1, 2021. The amount includes $1,450 for executory costs Question 14.5 points 5. Title to equipment automatically transfers to the lessee at the end of the lease term. The asset is expected to have a residual value of $ 11.500 at the end of its useful lite. 6. Both the lessee and the lessor use the calendar year for their accounting periods and prepare financial statements in accordance with ASPE structions a. Identify the lease type from the standpoint of the JKL Printers' Books (lessee). b. Prepare the journal entry to record the inception of the lease on the lessee's books. Prepare the journal entries on JKL Printers' books to record the first payments and expenses related to this lease for the years 2021 as well as any adjusting journal entries ends of December 31, 2021 toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) Paragraph - Arial 10pt AL a SEE "2 BY 18 HE A O B 49 B Te to equipment automatically transfers to the lessee at the end of the lease term. The asset is expected to have a residual value of $ 11,500 at the end o 8 6h January 1, 2021. The amount includes $1,450 for executory costs Both the lesseo and the lessor use the calendar year for their accounting periods and prepare financial statements in accordance with ASPE Instructions a. Identify the lease type from the standpoint of the JKL Printers' Books (lessee). b. Prepare the journal entry to record the inception of the lease on the lessee's books c. Prepare the journal entries on JKL Printers' books to record the first payments and expenses related to this lease for the years 2001 as well as any adjusting journal e ends of December 31, 2021 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Arial BIUS Paragraph XX < - Y 10pt < r 1992 > B Av 7 BB +