P21.15B LO 2,3) (Finance and Operating Lease) Gabriel Company losses a place of machinery to Tagged Inc. on January 1 2121, under the following terms 1. The l iste for 4 years with rentalyments of 24,945 to be made at the beginning of each year. 2. The machinery has a fair value of $138.000, a book value of 595200, and an economic life of 12 years At the end of the race term bath i s the machinery to residual value of $40,000. To protect against a large loss, Gabriel requests get to guarantee $25,000 of the residual value, which Tagget agrees to do 4. The house does not transfer ownership at the end of the losse term des not have any gain purchase options, and the is not of a specialized nature 5. The implicitrate is , which is known by Tagget. 6. Collectibility of the ments is probable Instructions (Rosind all numbers to the nearest dallar) a) Evaluate the criteria for classification of the lense, and describe the nature of the lease th) Prepare the journal entries for Target for the year 2000 le) Prepare the journal entries for Gabriel for the year 2021 Id) Suppese Tagget did not guarantee any amount of the expected residual value. How would your answers to parts a change? c )