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On january 1 of Year. 1, Lessee inc. leased equipment at an annual payment of 5170,198 , payable each january 1 for four years, with the first payment due immediately. The equipment had a fair value of $800,000 and a book value of $750,000, and was commonly purchased or leased by customers. The lessor estimates that the equipment has an estimated useful life of eight years and an ostimated residual value of 5250.000 , not guaranteed by the lessee. Lessor's implicit rate is 7.5%, which is unknown to the lesseo. The lessee's incremental borrowing rate is 8%. The lease does not contain a purchase option or a renewat option. The lessee had no other costs associated with this lease Required a. How would Lessen inc. classify the lease? b. Prepare a schedule of the lease liability for the 4-year lease term. - Note: Round each amount in the schedule to the nearest whole doliar, Use the rounded amount for later calculations in the schedule. d. Prepare the entries for Lessee inc. on January 1 and December 31 of the first two years of the lease term, assuming Lessee Incis accounting year ends December 31. - Note: Round your answers to the nearest whole dollar. payment due immediately. The equipment had a fair value of $800,000 and a book value of 5750,000 , and was commonly purchased or leased by customers. The lessor estimates that the equipment has an estimated useful life of eight years and an estimated residual value of $250,000, not guaranteed by the lessee. Lessor's implicit rate is 7.5%, which is unknown to the lessee. The lessee's incremental borrowing rate is 8%. The lease does not contain a purchase option or a renewal option. The lessee had no other costs associated with this lease. Required a. How would Lessee inc, classily the lease? c. Prepare a schedule of the right-of-use asset for the 4-year lease term. - Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. On january 1 of Year. 1, Lessee inc. leased equipment at an annual payment of 5170,198 , payable each january 1 for four years, with the first payment due immediately. The equipment had a fair value of $800,000 and a book value of $750,000, and was commonly purchased or leased by customers. The lessor estimates that the equipment has an estimated useful life of eight years and an ostimated residual value of 5250.000 , not guaranteed by the lessee. Lessor's implicit rate is 7.5%, which is unknown to the lesseo. The lessee's incremental borrowing rate is 8%. The lease does not contain a purchase option or a renewat option. The lessee had no other costs associated with this lease Required a. How would Lessen inc. classify the lease? b. Prepare a schedule of the lease liability for the 4-year lease term. - Note: Round each amount in the schedule to the nearest whole doliar, Use the rounded amount for later calculations in the schedule. d. Prepare the entries for Lessee inc. on January 1 and December 31 of the first two years of the lease term, assuming Lessee Incis accounting year ends December 31. - Note: Round your answers to the nearest whole dollar. payment due immediately. The equipment had a fair value of $800,000 and a book value of 5750,000 , and was commonly purchased or leased by customers. The lessor estimates that the equipment has an estimated useful life of eight years and an estimated residual value of $250,000, not guaranteed by the lessee. Lessor's implicit rate is 7.5%, which is unknown to the lessee. The lessee's incremental borrowing rate is 8%. The lease does not contain a purchase option or a renewal option. The lessee had no other costs associated with this lease. Required a. How would Lessee inc, classily the lease? c. Prepare a schedule of the right-of-use asset for the 4-year lease term. - Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule