On January 1, 2017, Merchant Co. sold a tractor to Swanson Inc. and simultaneously leased it back for five years. The tractor's fair value is $250,000, but its carrying value on Merchant's books prior to the transaction was $200,000. The tractor has a six-year remaining estimated useful life, and Merchant and Swanson both used 8% interest in evaluating the transaction. Merchant has agreed to make five payments of $57,976 beginning January 1, 2017. Use tables (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided. Round your final answers to the nearest whole dollar amount.) Required: 1. What type of a lease is this for Merchant under ASC 840? 2. Compute the amount of Merchant's gain on the transaction under ASC 840. 3. Prepare the January 1, 2017, entries on Merchant's books to account for the sale and leaseback under ASC 840. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What type of a lease is this for Merchant under ASC 840? What type of a lease is this for Merchant under ASC 840? < Required 1 Required 2 >