Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physiclans Leasing purchased a lithotripter from Rand for $$1,900,000$ and leased it to Mid$-$South Urologists Group, Incorporated, on January $1.2024.$

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1.$ FVA of $$1,$ PVA of $$1.$ FVAD of $$1$ and PVAD of $$1)$

Required:

How should this lease be classified by Mid$-$South Urologists Group and by Physiclans' Leasing?

$2$ Prepare approprlate entrles for both Mid$-$South Urologists Group and Physiclans' Leasing from the beginning of the lease through the second rental payment on April $1,2024.$ Adjusting entrles are recorded at the end of each fiscal year $($December $31).$

Assume Mid$-$South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $$1\mathrm{.}6$ milion. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April $1,2024.$

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Requined $2$

Rieguingit $2$

Returiad $3$

How should this lase be classified by Mid$-$South Urologists Gnoup and by Physicians Leasing?

Mid$-$Scuth Urologists Greup

Physicisns' Leasing