On 9/30/18, Georgia-Atlantic, Inc., leased snowplow equipment from Builders, Inc. The lease agreement specified quarterly payments of $5,000 beginning September 30, 2018, the beginning of the lease, and each quater through 4-year lease term. The city has the option to purchase the truck on September 29, 2021, for $30000 when it was expected to have a fair value of $50,000. The estimated useful life of the snowplow is 5 years. The lease's implicit quarterly interest rate is 2% (approximately 8% annually). C&M paid $240,000 for the snowplow.

A) Describe why this lease is a finance/sales-type lease.

B) Record all appropriate journal entries for C&M Equipment (the lessor) on September 30, 2018

C) Record all appropriate journal entries for the City of Urbana (the lessee) on September 30, 2018

D) Record all appropriate journal entries for C&M Equipment (the lessor) on December 31, 2018