On April 1, 2020, Voila Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Voila to make annual payments of $8,668 at the beginning of each year, starting April 1, 2020. The machine has an estimated useful life of 6 years and a fair value at the inception the lease of $39,249. The machine reverts back to the lessor at the end of the lease term. Voila uses the straight-line method of depreciation for all of its plant assets. Voila's incremental borrowing rate is 10%, the same as the lease's implicit rate.

a) What type of lease is this? Explain in detail how you determined the type of lease.

b) Compute the present value of the minimum lease payments.

c) Prepare an amortization table for the lease arrangement

d) Record the journal entries at the inception of the lease