Question - 3) Eubank Company, as lessee, enters into a lease agreement on July 1, 2018, for equipment. The following data are relevant to the lease agreement: 1. The term of the noncancelable lease is 4 years. Payments of 978,446 are due on July 1 of each year. There are 4 payments. The first payment is on July 1, 2018. 2. The fair value of the equipment on July 1, 2018 is 3,500,000. The equipment has an economic life of 6 years with no salvage value. 3. Eubank depreciates similar machinery it owns on the straight-line basis. Eubank plans to use it just for 4 years. 4. The lessee pays all executory costs. 5. The lessee is aware that the lessor used an implicit rate of 8% in computing the lease payments (present value factor for 4 periods at 8%, 3.57710). (b) Instructions (a) Indicate the type of lease Eubank Company has entered into and what accounting treatment is applicable. Prepare the journal entries on Eubank's books that relate to the lease agreement for the following dates: (Round all amounts to the nearest dollar. Include a partial amortization schedule.) 1. July 1, 2018 2. December 31, 2018. 3. July 1, 2019. 4. December 31, 2019