On January 1, 2017, Crandell Company leased equipment to Boyer Corporation. The following information pertains to this lease. 1. The term of the noncancelable lease is 6 years, with no renewal option. The equipment reverts tothe lessor at the termination of the lease. 2. Equal rental payments are due on January 1 of each year, beginning in 2017. 3. The fair value of the equipment on January 1, 2017, is $176,000, and its cost is $140,000. 4. The equipment has an economic life of 8 years, with an unguaranteed residual value of $11,000. Boyer depreciates all of its equipment on a straight-line basis. 5. Crandell set the annual rental to ensure an 12% rate of return. Boyers incremental borrowing rate is 13%, and the implicit rate of the lessor is unknown. 6. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by the lessor. Instructions (Both the lessor and the lessees accounting period ends on December 31.) (a) Discuss the nature of this lease to Crandell and Boyer. (b) Calculate the amount of the annual rental payment. (c) Prepare all the necessary journal entries for Boyer for 2017. (d) Prepare all the necessary journal entries for Crandell for 2017