Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians' Leasing purchased a lithotripter from Rand for $2,260,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2021. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Lease Description: Quarterly lease payments Lease term No residual value; no purchase option $147,483-beginning of each period 5 years (20 quarters) 5 years Implicit interest rate and lessee's incremental borrowing rate 12% Economic life of lithotripter Fair value of asset $2,260,000 Required: 1. How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing? 2. Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the beginning of the lease through the second rental payment on April 1, 2021. Adjusting entries are recorded at the end of each fiscal year (December 31). 3. Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $1.9 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Lessee Required 2 Lessor Required 3 How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing? Mid-South Urologists Group Physicians' Leasing Required 1 Required 2 Lessee Required 2 Required 3 Lessor Prepare appropriate entries for Mid-South Urologists Group from the begin 1, 2021. Adjusting entries are recorded at the end of each fiscal year (Ded select "No journal entry required" in the first account field. Enter your ans your answers to nearest whole dollars.) View transaction list 1 Record lease. 2 Record cash payment. 3 Record cash payment. Required 1 Required 2 Lessee Required 2 Lessor Required 3 Prepare appropriate entries for Physicians' Leasing from the beginning of t Adjusting entries are recorded at the end of each fiscal year (December 31 journal entry required" in the first account field. Enter your answers in wh answers to nearest whole dollars.) View transaction list 1 Record lease. 2 Record cash received. 3 Record cash received. Required 1 Required 2 Lessee Required 2 Lessor Required 3 Assume Mid-South Urologists Group leased the lithotripter directly from the a cost of $1.9 million. Prepare appropriate entries for Rand Medical from the on April 1, 2021. (If no entry is required for a transaction/event, select "No answers in whole dollars and not in the millions of dollars. Round your answ View transaction list 1 Record lease. 2 Record cash received. 3 Record cash received