On January 1, 2022, Kevin's Appliance Company leased delivery trucks from Captain Leasing. The lease agreement calls for Kevin's Appliance to make semiannual lease payments of $14,281.53 over a four-year lease term, payable June 30 and December 31 , with the first lease payment due on January 1,2022 . Kevin's Appliance incremental borrowing rate is 8%, the same rate Captain Leasing uses to calculate the lease payment amounts. The lease does not provide for any ownership transfer or option to purchase the delivery trucks. Amortization is recorded on a straight-line basis at the end of each fiscal year, which is December 31st. The fair value of the delivery trucks is $100,000 at January 1,2022. Assume Captain Leasing constructed the delivery trucks at a cost of $60,000 and then leased the delivery trucks to Kevin's Appliances under the terms listed in Requirement 1. 3-1 Identify and explain whether Captain Leasing will classify this lease as Sales Type without selling profit, Sales Type with selling profit, or an Operating Lease. 3-2 Prepare the January 1, 2022 journal entries that Captain Leasing would make to lease the delivery trucks to Kevin's Appliance and receive the first lease payment. 3-3 Prepare the June 30, 2022 and December 31, 2022 journal entries that Captain Leasing would record for the lease