Use the information below to answer the following SEVEN items On January 1, 2018, OC Leasing Company (lessor) leased equipment to Golden Gate Corporation (lessee).

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Use the information below to answer the following SEVEN items On January 1, 2018, OC Leasing Company (lessor) leased equipment to Golden Gate Corporation (lessee). The following information pertains to this lease. The term of the noncancelable lease is 4 years. The equipment reverts to OC Leasing at the end of the lease term. Equal rental payments are due on January 1* of each year, beginning in 2018. The fair value and cost of the equipment to OC Leasing on January 1, 2018, are $250,000 and $200,000 respectively. The equipment has an economic life of 4 years, with a residual value of $60,000 that is unguaranteed. OC Leasing sets the annual rental to ensure a 9% rate of return Golden Gate's incremental borrowing rate is 10%. OC leasing's implicit rate is known to Golden Gate. Collectability of lease payments is reasonably assured. Present value of an ordinary annuity of 1 for 4 periods at 99 is 3.23972 Present value of an annuity due of 1 for 4 periods at 9% is 3.53130 Present value of 1 after 4 periods at 9% is 0.70843 Present value of an ordinary annuity of 1 for 4 periods at 10% is 3.16986 Present value of an annuity due of 1 for 4 periods at 10% is 3.48685 Present value of 1 after 4 periods at 10% is 0.68301 (Both the lessor and the lessee's accounting periods end on December 31.) What is the type of the lease for OC Leasing Company (select the best answer)? Select one: O a. Sales-type lease. O b. Operating lease. O c Finance lease O d. Direct financing lease. What is the type of the lease for Golden Gate Company (select the best answer)? Select one: O a. Operating lease. O b. Direct financing lease. O c. Finance lease O d. Sales-type lease. How would OC Leasing record the lease on January 15, 2018? Select one: O a. Debit Lease Receivable $250,000, Debit Cost of Goods Sold $157 494 Credit Sales Revenue $207,494 Credit Inventory $200,000. O b. Debit Lease Receivable 5250,000, Debit Cost of Goods Sold $159,019. Credit Sales Revenue $209,019. Credit Inventory 5200,000. Oc. None of these. Od Debit Lease Receivable $250,000. Debit Cost of Goods Sold $200,000, Credit Sales Revenue $250,000, Credit Inventory $200,000. Use the information below to answer the following SEVEN items On January 1, 2018, OC Leasing Company (lessor) leased equipment to Golden Gate Corporation (lessee). The following information pertains to this lease. The term of the noncancelable lease is 4 years. The equipment reverts to OC Leasing at the end of the lease term. Equal rental payments are due on January 1* of each year, beginning in 2018. The fair value and cost of the equipment to OC Leasing on January 1, 2018, are $250,000 and $200,000 respectively. The equipment has an economic life of 4 years, with a residual value of $60,000 that is unguaranteed. OC Leasing sets the annual rental to ensure a 9% rate of return Golden Gate's incremental borrowing rate is 10%. OC leasing's implicit rate is known to Golden Gate. Collectability of lease payments is reasonably assured. Present value of an ordinary annuity of 1 for 4 periods at 99 is 3.23972 Present value of an annuity due of 1 for 4 periods at 9% is 3.53130 Present value of 1 after 4 periods at 9% is 0.70843 Present value of an ordinary annuity of 1 for 4 periods at 10% is 3.16986 Present value of an annuity due of 1 for 4 periods at 10% is 3.48685 Present value of 1 after 4 periods at 10% is 0.68301 (Both the lessor and the lessee's accounting periods end on December 31.) What is the type of the lease for OC Leasing Company (select the best answer)? Select one: O a. Sales-type lease. O b. Operating lease. O c Finance lease O d. Direct financing lease. What is the type of the lease for Golden Gate Company (select the best answer)? Select one: O a. Operating lease. O b. Direct financing lease. O c. Finance lease O d. Sales-type lease. How would OC Leasing record the lease on January 15, 2018? Select one: O a. Debit Lease Receivable $250,000, Debit Cost of Goods Sold $157 494 Credit Sales Revenue $207,494 Credit Inventory $200,000. O b. Debit Lease Receivable 5250,000, Debit Cost of Goods Sold $159,019. Credit Sales Revenue $209,019. Credit Inventory 5200,000. Oc. None of these. Od Debit Lease Receivable $250,000. Debit Cost of Goods Sold $200,000, Credit Sales Revenue $250,000, Credit Inventory $200,000