On January 1, 2021, A&A Company signed a 9-year non-cancellable agreement to lease electronic equipment from PC Inc. PC Inc. is in the business of selling and leasing electronic equipment. Collectibility of the lease payments is reasonably assured and no additional costs are to be incurred by the lessor Both the lessor and the lessee are private corporations that follow ASPE. The following information is available regarding this lease agreement. a. The agreement requires equal payments at the beginning of each year, starting January 1. 2021. b. On January 1, 2021, the fair value of the leased asset is $203.000. The cost of the leased asset to PC Inc. was $121,800. c. The leased asset has an estimated useful life of 11 years, with no residual value. d. The electronic equipment will revert to PC Inc. at the end of the lease term. e. The leased asset is expected to have a fair value of $26,560 at the end of the lease term. This fair value amount has been guaranteed by A&A Company. f. A&A Company has a borrowing rate of 5%. . PC Inc. set the annual rental to ensure a 6% rate of retum. h. PC Inc. has a year end of December 31. Required: 1. What type of lease is this for the lessor? Justify your response, considering all applicable criteria used to determine the type of lease. (3 marks) 2. Calculate the amount of each lease payment. (2 marks) 3. Prepare an amortization schedule for the lessor that includes the first 3 lease payments. (2 marks) 4. Prepare all journal entries that PC Inc. would record for the lease on each of the following dates: January 1, 2021 (4.5 marks) December 31, 2021 (1 mark) January 1, 2022 (0.5 marks)