Recording Finance Lease, Unguaranteed Residual, Initial Direct Lease Costs-Lessee On January 1, 2020, Alex Company signed a 5-year lease contract for equipment with Abel Company. The equipment had a normal selling price of $44,000 and an estimated useful life of 6 years. Five annual payments of $9,452 are payable by Abel on January 1, beginning in 2020. The asset reverts to Alex at the end of the lease term, December 31, 2024, and is estimated to have an unguaranteed residual value on that date of $2,400. Alex's implicit interest rate is 6%, which is known to Abel. Abel also paid legal fees in the execution of the lease of $1,440 on January 1, 2020. a. How would Abel Company classify the lease? b. Prepare an amortization schedule of the lease liability. Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. Interest Reduction of Date Lease Payment on Liability Lease Liability Lease Liability Jan. 1, 2020 $ 0 Jan. 1, 2020 S 0 $ 05 0 0 Jan. 1, 2021 0 0 0 0 Jan. 1, 2022 0 0 0 0 Jan. 1, 2023 0 0 0 Jan. 1, 2024 0 0 0 0 0 Total $ 0 $ 05 0 c. Prepare the entries for Abel Company for 2020. Note: Round your answers to the nearest whole dollar. Note: List multiple debits or credits (when applicable) in alphabetical order. Date Jan. 1, 2020 Account Name Dr. Cr. 0 0 0 0 0 0 To record lease liability and right-of-use asset Jan. 1, 2020 0 0 0 0 To record lease payment Dec. 31, 2020 0 0 0 0 To record interest Dec. 31, 2020 0 0 0 0 To record amortization