On 1/1/17, Darien Company (lessor) leased a new digital printing press to Aztec Inc (lessee). At 1/1/2017: Fair market value of press - $400,000 $300,000 - Book Value> Expected Residual value of press at lease end - $50,000 The lease is a 6 year non-cancelable lease beginning on 1/1/17. Lease payments of $73, 806 are payable January 1 each year. Aztec Ine assumes all costs and risks of ownership, including the fact that it quarantees the residual value. The lease contains no renewal or bargain purchase option, and the press reverts to Darien Company at the end of 2022 The asset has an estimated economic life of 9 years. Both companies depreciate assets using the straight-line method. Darien's implicit rate is 8 (atated in the lease agreement Aztec signed) The Axteets incremental borrowing rate is 121. Both companies have a December 31 fiscal year-end. The collectibility of the lease payments is reasonably assured there are about costs for the lesso On 12/31/2022, the actual value of the press is $48, 700 PVF-AD -4.99271) DVE,-0.63017 REQUIRED: 1. Demonstrate use words and numbers) how the lessor determined the annual lean 2. What ty 3. Complete the missing zation schedule for the lassee. Cash Interest JA Lease Lease Payment Expense Liability Liability 1/1/2017 1/1/2017 73,806 12/31/2017 1/1/2018 73, 806 12/31/2018 1/1/2019 73, 806 12/31/2019 12/31/2020 1/1/202173,806 12/31/2021 1/1/202273, 806 12/31/2022 4. Prepare journal entries for the lessee for 2017, 2018 and 2022