Part V: Lessee and Lessor enter into a lease agreement on January 1, 2019, for equipment. The following data are relevant to the lease agreement: 1. The term of the non-cancelable lease is 5 years. Payments of $13,000 including executory costs of $3,000 are due at the end each year. 2. The equipment has an economic life of 10 years with a residual value of $15,000 at the end of the lease, but not guaranteed. The equipment's fair value equals its cost of $49,970. 3. Lessee depreciates similar machinery it owns on the straight-line basis. 4. Lessee's incremental borrowing rate is 9% per year. Lessee is aware that the lessor used an implicit rate of 6% in computing the lease payments. The collectability of the lease payments is probable for the lessor. INSTRUCTIONS: (a) Indicate the type of lease to the Lessee and Lessor. (b) Prepare the journal entries on the books of Lessee and Lessor through December 31, 2023