Question 11 Colonel Systems leases equipment from Aspirin Company. Assume the following: 1. The lease term is eight (8) years and requires equal rental payments of $55,000 at the beginning of each year. 2. The fair value of the equipment at the commencement of the lease is $340,000. 3. The estimated useful life of the equipment is twelve (12) years. 4. The lessee guarantees a residual value of the equipment at the end of the lease of $30,000. 5. The equipment's expected residual value at the end of the lease is $70,000. 6. The lessor set the annual rental to earn a rate of return of 11%, and this fact is known to the lessee. 7. The lease does not transfer title or contain a bargain purchase option. 8. The leased equipment is not a specialized asset. 34 paints A. Calculate the present value for the present value test. (Round to the nearest dollar.) To get partial credit, show your calculations. B. How should Colonel Systems classify this lease based the present value test? Provide a brief explanation for your answer based on the criteria for the present value test. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac R