On January 1, 20X4, Masons an equipment manufacturer, entered into a new arrangement, as the lessor, to lease equipment with the following terms: - An annual lease payment of 580,000 is due at the beginning of each year. - The lease term is six years. - At the end of the lease, there is a guaranteed residual value of $25,000, - The lease has an implied interest rate of 5.4%. - The equipment has a cost of $345,000, which is included in inventory. - The selling price of the equipmerit is $460,000, which represents fair market value. - The economic useful iffe of the equipment is eight years. Beguired a) Determine the classification of the lease: b) Prepare all the journal entries for 204 related to this lease. Note that Masons has a December 31 year end