questions in the picture

Problem 1 Soaring Pieces Inc. creates aluminum alloy parts for commercial aircraft. In a recent transaction Soaring leased a high precision lathe machine from Rapid Revolving Corp. on January 1, 2019. The following information pertains to the leased asset and the lease agreement: Cost of lathe to lesson $140.000 Rapid's normal selling price for lathe $178,268 Useful life 7 years Estimated value at end of useful life $8,000 Lease provisions Lease term 5 years Payment frequency Annua Start date of lease January 1 Payment timing December 31 Estimated residual value at end of lease (unguaranteed) $20,000 Interest rate implicit in the lease (readily determinable by lessee) 7% Lessee's incremental borrowing rate 8% The lathe machine will revert back to the lessor at end of lease term, title does not transfer to lessee at any time, and there is not a bargain purchase option. Required: a. Determine the amount of lease payment that the lessor would require to lease the asset to an outside party. b. Classify this lease from the perspective of the lessor, Rapid Revolving Corp. c. Prepare an amortization schedule for the lessor. d. Prepare the journal entries on January 1, 2019 and December 31, 2019 for the lessor. Problem 2 On July 1, 2019, Jupiter Company leased equipment to Planet Company. The terms of the lease are as follows: Fair value of leased asset 70,000 Lease payments, due each Jul 1 12,000 Lease term 9 years Economic life of leased asset 10 years Guaranteed residual value 5,000 Expected payout under the guaranteed residual 6.000 Implicit rate in the lease (not readily determinable by lessee) 13% essee's incremental borrowing rate 15% Planet uses straight-line depreciation for its property, plant, and equipment, and its year -end is December 31. Required: Prepare the journal entries for the lessee from July 1 through December 31, 2019