Rand Medical manufactures lithotripters. Lthotripsy uses shock waves Instead of surgery to elminate kidney stones. Physicians Leasing purchased a Iithotripter from Rand for $2,260,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2018. (FV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $) (Use appropitate factoris) from the tables provided) ase Descrption Quarterly lease payments Lease term No residual value; no purchase option Econonic 11fe of 1ithotripter Implicit interest rate and lessee's increnental borrowing rate 8 Fair value of asset $135, s04-beginning of each period s years (20 quarters) 5 years $2,260,000 Required 1 How should this lease be classified by Mid-South Urologists Group and by Physiclans' 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, 2018. Adjusting entries are recorded at the end of each fiscal year (December 31) 3. Assume Mid-South Urologists Group leased the Iithotripter 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, 2018 Complete this question by entering your answers in the tabs below. Required 2 Lessee Required 2 Lessor Required 1 Required 3 How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing? Mid-South Urologists Group Physioians Leasing