On January 1, 2017, Manor Inc. signed a 6-year noncancelable lease for a printing press. The terms of the lease called for Manor to make annual payments of $54,291 at the beginning of each year, starting January 1, 2017. The printing press has an estimated useful life of 6 years and a $10,000 unguaranteed residual value. The printing press reverts back to the lessor at the end of the lease term. Manor uses the straight- line method of depreciation for all of its plant assets. Manor's incremental borrowing rate is 12%, and the Lessor's implicit rate is unknown. Instructions (a) What type of lease is this? Explain. (b) Compute the present value of the minimum lease payments. (c) Prepare all necessary journal entries for Manor for this lease through January 1, 2018. B EXERCISES E20-1B (L01,2) (Pension Expense, Journal Entries) The following information is available for the pension plan of Talkspace Corporation for the year 2017. Actual and expected return on plan assets Benefits paid to retirees Contributions (funding) Interest/discount rate Prior service cost amortization Projected benefit obligation, January 1, 2017 Service cost $ 65,000 163,000 230,000 8% 40,000 2,600,000 250,000 Instructions (a) Compute pension expense for the year 2017. (b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2017.