On January 1, 2021, Boeing Inc. moves into an eight-year, non-cancellable lease agreement to lease an airplane to Air Canada, with payments to be made at the end of each year. The following information relates to this agreement: 1. Air Canada has the option to purchase the airplane for $ 7,000,000 at the end of the lease, at which time the airplane's fair value is expected to be $ 12,000,000. 2. The airplane cost Boeing Inc $ 30,000,000. It has an estimated useful life of fifteen years, and a residual value of zero at the end of that time due to technological obsolescence). 3. Air Canada will pay all executory costs related to the leased airplane. 4. Annual year-end lease payments of S 4,562,337 will allow Boeing Inc. to earn an 8% return on its investment Instructions a) What type of lease is this for the lessor? Justify your answer. Assume Boeing Inc. adheres to IFRS. b) Prepare the journal entries on Boeing Inc, books to record the lease agreement, to reflect the transactions. On January 1, 2021, Boeing Inc. moves into an eight-year, non-cancellable lease agreement to lease an airplane to Air Canada, with payments to be made at the end of each year. The following information relates to this agreement: 1. Air Canada has the option to purchase the airplane for $ 7,000,000 at the end of the lease, at which time the airplane's fair value is expected to be $ 12,000,000. 2. The airplane cost Boeing Inc $ 30,000,000. It has an estimated useful life of fifteen years, and a residual value of zero at the end of that time due to technological obsolescence). 3. Air Canada will pay all executory costs related to the leased airplane. 4. Annual year-end lease payments of S 4,562,337 will allow Boeing Inc. to earn an 8% return on its investment Instructions a) What type of lease is this for the lessor? Justify your answer. Assume Boeing Inc. adheres to IFRS. b) Prepare the journal entries on Boeing Inc, books to record the lease agreement, to reflect the transactions