Question \#2 Ivanhoe Inc. leased a new crane to Bridgeport Construction under a 5-year, noncancelable contract starting January 1, 2025. Terms of the lease require payments of $48,000 each January 1, starting January 1, 2025. The crane has an estimated life of 7 years, a fair value of $240,000, and a cost to Ivanhoe of $240,000. The estimated fair value of the crane is expected to be $45,000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Ivanhoe and Bridgeport adjust and close books annually at December 31 . Collectibility of the lease payments is probable. Bridgeport's incremental borrowing rate is 6%, and Ivanhoe's implicit interest rate of 6% is known to Bridgeport. Required: 1. Identify the type of lease involved for lessee and lessor. 2. Prepare all the entries related to the lease contract and leased asset for the year 2025 for the lessee and lessor, assuming Bridgeport uses straight-line amortization for all similar leased assets, and Ivanhoe depreciates the asset on a straight-line basis with a salvage value of $14,000. 3. Discuss what should be presented in the balance sheet and the income statement of both the lessee and the lessor at December 31,2025