Please see attached need answer by tomorrow 4:PMPlease see attached need answer by tomorrow 4:PM

HW Assignment 7 - Leases You MUST show all work in order to receive credit for the problems. Walden Company signed the following non-cancelable lease for a machine that will be used in operations: 1. Contract Date: 1/1/14 2. 5 year lease 3. Annual payment of $8,668 are due at the end of each year starting on 12/31/14 4. Machine has a useful life of 6 years and no salvage value 5. Machine reverts back to lessor at the end of the lease 6. There is no bargain purchase option 7. Walden incremental borrowing rate is 11% and the lessor's implicit rate on the lease is 10% (known by Walden) 8. Fair market value of the machine on 1/1/14 is $35,000 9. Walden pays all executory costs 10. Walden uses the straight-line method of depreciation Required: 1. What type of lease is this to Walden? Be specific and outline which criteria you used to justify your answer. 2. Record the entries required on Walden's books for the inception of the lease on January 1, 2014. 3. Prepare the amortization schedule for the liability for all 5 years. 4. Record the entry on Walden's books on December 31, 2014, to record depreciation of the leased asset. 5. Record the first lease payment on Walden's books