Mineiro Inc. will lease an espresso machine from Kim's Corporation starting 1/1/2023. The lease agreement does not transfer ownership, does not contain a bargain purchase option, and is not a specialized asset. The lease agreement covers 5 years of the machine's 8-year useful life, and the present value of the lease payment is 80% of the fair value of the asset leased. Annual lease payment is $50,000 at the beginning of each year, and Mineiro's incremental borrowing rate is 6%, which is the same as the lessor's implicit rate. (a) How should Mineiro classify this lease? (b) Present Mineiro's journal entries on 1/1/2023. (c) Present Mineiro's journal entries on 12/31/2023.