On January $1,20$X$1,$ Trask Co$.$ signs an agreement to lease office equipment from Coleman Inc. for three years with payments of $$193,357$ beginning December $31,20$X$1.$ The equipment$$s fair value is $$500,000$ with an expected useful life of four years. At the end of three years, the equipment is expected to have a $$50,000$ residual value, which Trask does not guarantee. Both Trask and Coleman use a $12\%$ rate of return in evaluating this transaction. Trask uses straight$-$line depreciation. Use tables $($PV of $1,$ PVAD of $1,$ and PVOA of $1)($Use the appropriate factor$($s$)$ from the tables provided.$)$

Required:

$1.$ What type of a lease is this for Trask?

$2.$ Prepare a schedule to amortize the lease liability.

$3.$ Prepare the journal entries required on Trask$$s books for $20$X$1$ and $20$X$3.$

$4$a$.$ Assume now that Trask guarantees the residual value. Prepare an amortization table. Further assume that the equipment$$s residual value on December $31,20$X$3,$ is $$40,000.$

$4$b$.$ Assume now that Trask guarantees the residual value. Prepare the journal entries necessary on Trask$$s books for $20$X$1$ and $20$X$3.$ Further assume that the equipment$$s residual value on December $31,20$X$3,$ is $$40,000.$

Prepare the journal entries required on Trask$$s books for $20$X$1$ and $20$X$3.($If no entry is required for a particular transaction, select $"$No journal entry required" in the first account field. Round your answers to the nearest whole dollar.$)$

$6.$ Record the entry for the return of the asset to the lessor at the end of $20$X$3.$

Assume now that Trask guarantees the residual value.$$Prepare the journal entries necessary on Trask$$s books for $20$X$1$ and $20$X$3.$ Further assume that the equipment$$s residual value on December $31,20$X$3,$ is $$40,000.($If no entry is required for a particular transaction, select $"$No journal entry required" in the first account field. Round your answers to the nearest whole dollar.$)$

$1.$ Record the entry for the signing of the lease.

$2.$ Record the entry for amortization of leased assets on December $31,20$X$1.$

$3.$ Record the entry for the lease payment at the end of $20$X$1.$

$4.$ Record the entry for amortization of leased assets on December $31,20$X$3.$

$5.$ Record the entry for the lease payment at the end of $20$X$3.$

$6.$ Record the entry for the return of the asset to the lessor at the end of $20$X$3.$