Metlock Dairy leases its milking equipment from Bonita Finance Company under the following lease terms. 2. 3. The lease term is 10 years, noncancelable, and requires equal rental payments of $31,200 due at the beginning of each year starting January 1, 2020. The equipment has a fair value at the commencement of the lease (January 1, 2020) of $236,108 and a cost of $260,000 on Bonita Finance's books. It also has an estimated economic life of 15 years and an expected residual value of $15,300, though Metlock Dairy has guaranteed a residual value of $21.600 to Bonita Finance. The lease contains no renewal options, and the equipment reverts to Bonita Finance upon termination of the lease. The equipment is not of a specialized use. 4. Metlock Dairy's incremental borrowing rate is 8% per year. The implicit rate is also 8%. 5. Metlock Dairy depreciates similar equipment that it owns on a straight-line basis. 6. Collectibility of the payments is probable, Click here to view factor tables (a) Evaluate the criteria for classification of the lease, and describe the nature of the lease. In general, discuss how the lessee and lessor should account for the lease transaction. For the lessee, it is a and for the lessor, it is a