non-cancelable lease for a machine to nsters ownership of the machine to Hayes On January 1, 2013, Sandy Hayes Company entered into a non-cancelable lease for a be used in its manufacturing operations. The lease transfers ownership of the mach Company by the end of the lease term. The term of the lease is 8 years. The minimum payment made by Hayes Company on January 1, 2013, was one of eight equal and At the inception of the lease, the criteria established for classification as a capitanica lessee were met. 3. was one of eight equal annual payments. Instructions: (a) What is the theoretical basis for the accounting standard that requires certain long-term leases to be capitalized by the lessee DO NOT discuss the specific criteria for classifying a specific lease as a capital lease. (b) How should Hayes account for this lease at its inception and determine the amount to be recorded? (c) What expenses related to this lease will Hayes incur during the first year of the lease, and how will they be determined? (d) How should Hayes report the lease transaction on its December 31, 2013, balance sheet