On part b & c, handwritten please

SAMS Leasing Company agrees to lease equipment to Jetson Corporation on January 1, 2017 The following information relates to the lease agreement . The term of the lease is 7 years with no renewal option, and the machinery has an 2. 3. estimated economic life of 9 years The cost of the machinery is $525,000, and the fair value of the asset on January 1, 2017 is $700,000. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of S50,000. Jetson estimates that the expected residual value at the end of the lease term will be $50,000. Jetson amortizes all of its leased equipment on a straight-line basis Note that because the guaranteed residual value is equal to the expected residual value, the lessee would not include any amount of the guaranteed residual value in its calculation of the initial lease liability. HOWEVER, the guaranteed residual amount IS included in the computation for the Present Value classification test The lease agreement requires equal annual rental payments of $109,365 beginning on January 1, 2017 (the commencement of the lease). Jetson's incremental borrowing rate is 6%, and the lessor's implicit rate is unknown. Assume the accounting period ends on December 31 4. 5. 6. Instructions: (You may complete the entire problem, including your answer to part "a". the journal entries and posting to the t-accounts in Excel) I would prefer you do so. However, if you prefer to de it by hand, I'll accept the assignment in that form as well. Just take a picture of your assignment and upload it to Moodle.) a) Determine what type of lease this is from the perspective of the lessee. Showidiscuss how you made your decision. b) Compute the present value of the lease liability to the lessee c) Prepare the lease schedule (see set up on next page) using the effective-interest method d) Prepare the journal entries Jetson Corporation would make for the seven years related to the lease arrangement. e) Post your journal entries te the appropriate t-accounts. Annual Lease Reduction of Lease Date Intcrest on Lubilty Lease L