Recording Operating Lease Entries-Lessor incremental borrowing rate is 8%. The lease does not contain a purchase option or a renewal option. The lessee had no other costs associated with this lease. Required a. Recalculate the lessor's lease payment. - Note: Round answer to the nearest dollar. - Note: Do not use a negative sign with your answer. Lease payment b. Prepare the entries for the lessor for the year, assuming that the lessor uses the straight-line method to depreciate fixed assets. d. How would the lease be classified if instead, the lessee guaranteed a residual value of $136,000? Lease classification considering guaranteed residual value x