On January 1, 2021, a lessor and a lessee sign a lease agreement for a machine. The lessor originally purchased the machine for its fair market value. The lease specifies Quarterly lease payments at the beginning of each quarter. Additional information is provided below: Lease description: Quarterly lease payments Lease term No residual value; no bargain purchase option Economic life of the machine Annual Interest rate Calculated PV of minimum lease payments and Fair value of the asset $ 59, 385 at the beginning of each quarter (1/1, 4/1, 7/1, 10/1) 5 years (20 quarters) 5 years 12% $ 910,000 Required: 1. How should this lease be classified by the lessee, Imaging Group, and by the lessor, Easy Leasing? 2. Prepare appropriate entries for both lessee (Imaging Group) and lessor (Easy Leasing) from the beginning of the lease through the second lease payment on April 1, 2021. Lessor (Easy Leasing) acquired the machine at the Fair Market Value of the Asset. Assume that depreciation and amortization are recorded at the end of each fiscal year (December 31) so no need to record those. 3. Assume the lessee (Imaging Group) leased the machine directly from the manufacturer, Maker, which produced the machine at a cost of $610,000. Prepare appropriate entries for the manufacturer (Maker) from the beginning of the lease on January 1, 2021, through the second payment on April 1, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Lessee Required 2 Lessor Required 3 How should this lease be classified by Imaging Group and by Easy Leasing? Imaging Group