Required:

How should this lease be classified by Yard Art Landscaping $($the lessee$)?$

Calculate the amount Yard Art Landscaping would record as a right$-$of$-$use asset and a lease liability.

How should this lease be classified by Branch Motors $($the lessor$)?$

Show how Branch Motors calculated the $$31,000$ annual lease payments.

Calculate the amount Branch Motors would record as sales revenue.

Prepare the appropriate entries for both Yard Art and Branch Motors on December $31,2024.$

Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Yard Art.

Prepare an amortization schedule that describes the pattern of interest revenue over the lease term for Branch Motors.

Prepare the appropriate entries for both Yard Art and Branch Motors on December $31,2025.$

Prepare the appropriate entries for both Yard Art and Branch Motors on December $31,2027($the final lease payment$).$

Prepare the appropriate entries for both Yard Art and Branch Motors on December $31,2028($the end of the lease term$),$

assuming the truck is returned to the lessor, and the actual residual value of the truck was $$2,000$ on that date.