USE THE FOLLOWING INFORMATION FOR QUESTIONS #1-4: R&R Company leased equipment from First Title Leasing Corp and the following Information is relevant: First Title Leasing purchased the equipment for $1,200,000 Annual payments beginning 1/1/X1 Annual payments equal $150,000 Thereafter payments for the next calendar year will be made on this December 31 date each year Lease term 7 Estimated economic life 10 Discount/Interest Rate 896 Year end December 31 The lease is non-cancelable First Title Leasing routinely leases this type of equipment 1. This lease will be classified as which type: Finance Lease Operating Lease Question 2 2.5 pts [USE THE INFORMATION FROM QUESTION #1) 2. What is the amount of Amortization Expense that the Lessee will recognize in Year 20X2? O A $120.490 O B. $150,000 O C. $84,343 OD. $102,087 D Question 3 2.5 pts [USE THE INFORMATION FROM QUESTION #1] 3. What is the Lessee's journal entry for the 12/31/X1 lease payment? O A Debit Lease Payable for $150,000 and Credit Cash for $150,000 O B. Debit Lease Payable for $87,524. Debit Interest Expense for $62.476, and Credit Cash $150,000 O C. Debit Lease Payable for $94,525 Debit Interest Expense for $55,475, and Credit Cash $150,000 O D. Debit Lease Payable for $162,000 and Credit Cash for $162,000 D Question 4 2.5 pts (USE THE INFORMATION FROM QUESTION #1] 4. What is the amount of depreciation expense the Lessor will recognize in Year 20X3? Enter the amount as a positive value without symbols