Rhone-Meyo hadstries manutacturos equipment thot is sold or leased Oa Cocember 31, 2024, Ahone-Metro leased equbment to Wostem Soya Company for a fouryear period encing December 31, 2028, at which time possession of the leased asset will revert. bock to Rhone-Metro. - The equipment cost $325,000 to mandocture and has an expected useful ife of sikyeacs. - its normal sales pace is $388.827 - The expected residual value of $18,000 on December 3t, 2028, is not guaranteed. - Equal payments unider the kease are $109,000 fecliding $4,000 maintenance costs) and are doe on Deceenber 31 of eoch year - The firs pyyment was made on Decenber 31, 2024. - Western Soya's incremental borrowng rate is 10% - Western Soro knows the interest rate impliti in the loase poyments is 83. - Both companios use straight tine depreciation or amortization. Required: 1. Shew how Ahone-Metre calculsted the $109,000 anmual lesse payments. 2. How should this lease be classitied (af by Westeen Soya Compony (the lesseel and (b) by Rhone-Metro industries (the lesser)? 3. Prepare the appropriate enthes for both Westem Soya Compary and Rhane-Metro on December 31, 2024. 4. Prepare an amortization schedule(s) describing the pattem of interest ower the lease term for the lessee ard the lesioe, 5. Prepare the appropriate entries for both Woseem Soya and Finone Metro on December 31, 2025 (m7e second lease payment and amorsization), 6. Prepare the appropriate entries for both Westem Soys and Rhone Meto on December 31. 2028. aswuming the equiomcat is returned to Rhone-Motro and the actual cesidual value on that dote is $1,500. Complete this question by entering your answers in the tabs below. Show how Rhone-Metro cakulated the $102,000 annual fease pryments. Note: Round voue intermedite and fival ancwers to neare4t whible doliae. Complete this question by entering your answers in the tabs bolow. Show her Rhone-Metro calculated the 4109,000 annual lease payments. Note: fleand your interinediate and final answers to nearest whole doltar