Novak Dairy leases its milking equipment from Splish Finance Company under the following lease terms. 1. 2. The lease term is 10 years, noncancelable, and requires equal rental payments of $29.300 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 $222 524 and a cost of $261,000 on Splish Finance's books. It also has an estimated economic life of 15 years and an expected residual value of $15.000, though Novak Dairy has guaranteed a residual value of $22,000 to Splish Finance The lease contains no renewal options, and the equipment reverts to Splish Finance upon termination of the lease. The equipment is not of a specialized use. Novak Dairy's incremental borrowing rate is 8% per year. The implicitrate is also 8% Novak Dairy depreciates similar equipment that it owns on a straight-line basis. Collectibility of the payments is probable 3 4. 5. 6 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