Kaluzniak Corporation leased equipment to Moeller, Inc on January 1, 2020. The lease agreement called for annual rental payments of $1,137 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $7,000, a book value of $5,000, and Kaluzniak expects a residual value of $4.500 at the end of the lease term. Kaluzniak set the lease payments with the intent of earning a 6% return, though Moeller is unaware of the rate implicit in the lease and has an incremental borrowing rate of 8%. There is no bargain purchase option ownership of the lease does not transfer at the end of the lease term and the asset is not of a specialized nature Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer is correct Determine the nature of the lease to both Kaluzniak and Moeller The lease is a/an operating lease to Moeller The lease is a/an operative lease to Kaluzniak, e Textbook and Media List of Accounts Attempts: 1 of 10 used Your answer is partially correct Prepare all necessary journal entries for Moeller in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) late Account Titles and Explanation Debit Credit 20 > Right-of-Use Asset 3137 Lease Liability 3137 (To record the lease) Lease Liability 1137 Cash 1137 (To record lease payment) 1/20 Lease Expense 1137 Lease Llability 185 Right-of Use Asset 952 e Textbook and Media List of Accounts Save for Latur Attempts: 8 of 10 used Submit