Problem IV: Lessee Oscar and lensor Suan on January 1,2019, entcred inss a 6-year neo-cancelable lesie. for equipenent having a useful life of 12 ytars Lesseo's incremental borrosing rate is 10%, while lessors implicit rot is 98 and know to lewee. Lessee and lessor both uses the sraight-line metbod of depreciatioc The lenie coecains the following provivians: 1. Anmai rental payments of $30,000 payable at the besinning of each year, tarting January 1, 2019 2. There is a guaranteed residual value at ite end of be leave for 525,000 . 3. The escuipereat has a cost of $160,000 and fair value of $170,000. Collectability of leave payments is probatle. INSTRUCTIONS (a) What kind of lease is this to the lessee and the lesue? (b) Prepare the journal entries on the books of the leskee and the lessee abd the lessor throngh Decenber 31,2024 (c) Wbat if the residual value is unguaranteed? (d) What if there is a bargain purchase opbion of 525,000 at the end of the lease