Vator 10 puntos) agreement for equipment. Annual payments are 1, 2017, XYZ Company signed an 8-year lease 1 2017 XYZ Company signed an of equipment. Annual payments are $28 500 to be made at the beginning of year. At the end of the lease the inment will revert to the lessor. The equipment has a useful life of 8 years and has no sul life of 8 years and has no residual value. At the time of the lease agreement equipment has a fair value of $165.000 An interest rate of 10.5% ($14,332) and straight-line depreciation are used. Step 1: Identify the type of lease (Capital or Operating Lease) Conclusion: Step 2: Journal entries January 1, 2017 December 31, 2017 1-Depreciation Expense 2-Interest Expense GENERAL JOURNAL PAGE 1 DATE DEBIT DESCRIPTION CREDIT