Wiky Inc. enters into a lease agreement as lessor on January 1, 2020, to lease a check-in kiosk to HK Airlines. The normal selling price is $835,339. The term of the noncancelable lease is ten years and payments are required at the beginning of each year. The following information relates to this agreement: 1. HK Airlines has the option to purchase the kiosk for $1,000 when the lease expires at which time the fair value is expected to be $40,000. 2. The kiosk has an estimated useful life of twenty years and a guaranteed residual value of $40,000 at the end of the lease term. 3. HK Airlines will pay all executory costs related to the leased kiosk. 4. Annual beginning-of-year lease payments of $100,000 allow Wiky to earn a 5% return on its investment. Wiky has determined that the collectibility of the lease payments is probable. 5. The kiosk reverts to Wiky at the termination of the lease, is not a specialized asset, and has an alternative use. Required a. What is the amount of the lease receivable, rounded to nearest dollar for the lessor? The present value factor is rounded to the fifth decimal point and must be shown in the computations. (5 marks) b. What type of lease is this to Wiky Inc.? Discuss and explain clearly. (12 marks) c. Prepare a lease amortization schedule for the lessor for the first two years (2020-2021). (Round all amounts to nearest dollar.) (11 marks)