Presented below are three different lease transactions that occurred for Ruggiero Inc. in 2017. Assume that all lease contracts start on January 1, 2017. In no case does Ruggiero receive title to the properties leased during or at the end of the lease term.

		Lessor
		Judson Delivery		Hester Co.		Gunselman Auto
Type of property		Computer		Delivery equipment		Automobile
Yearly rental		$5,400		$4,600		$4,100
Lease term		6 years		4 years		2 years
Estimated economic life		7 years		7 years		5 years
Fair value of lease asset		$35,000		$26,500		$18,500
Present value of the lease rental payments		$33,500		$20,500		$13,900
Bargain purchase option		None		None		None

b. How should the lease transaction for Hester Co. be recorded in 2017? (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

c.How should the lease transaction for Judson Delivery be recorded on January 1, 2017?