Sharp Inc is a medical equipment supplier. It has introduced a new line of machines that will revolutionize the medical profession. The machine's potential users are reluctant because it is new and are not sure if they can purchase the machine, but they are willing to enter into a lease agreement if they can classify the lease as an operating lease. The new machine will replace the machine that Sharp Inc has been selling in the past. Leasing the new machine will result in a loss of an estimated 25% of machine sales. Some management members want to structure the lease so that Sharp inc as the lessor, can classify the lease as sales-type and thus avoid further reduction of income. Others believe that they should treat the lease as an operating lease and minimize the income tax liability in the short term. However, they are uncertain about how the financial statement would be affected by these two different approaches. They are also uncertain about how the lease could be structured to permit the lease to treat the lease as an operating lease and the lessor to treat it as a sales-type lease. As the accountant for Sharp Inc, explain how Sharp inc should record the lease, Be sure to support your rationale and explain the advantages and the disadvantages of the methods or approach the accountant chose. Be ready to defend it, against the approach chosen by the other accountants' accountant at Sharp Inc, to the executive committee of Sharp Inc