Wildhorse Manufacturing Ltd. has signed a lease agreement with Blossom Leasing Inc. to lease some specialized manufacturing equipment. The terms of the lease are as follows . The lease is for 5 years commencing January 1, 2023 . Wildhorse must pay Blossom $59,445 on January 1 of each year, beginning in 2023. Equipment of this type normally has an economic life of 6 years. Blossom has concluded, based on its review of Wildhorse's financial statements, that there is no unusual credit risk in this situation. Blossoms will not incur any further costs with regard to this season . Blossom purchases this equipment directly from the manufacturer at a cost of $225,329, and normally sells the equipment for $275,429 . Wildhorse's borrowing rate is 7% Blossom's implied interest rate is 6%, which is known to Wildhorse at the time of negotiating the lease Wildhorse uses the straight-line method to depreciate similar equipment. Both Wildhorse and Blossom have calendar fiscal years (year end December 31), and follow ASPE Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE (a) Your answer is correct From Wildhorse Manufacturing's perspective, is this a capital or operating lease? Wildhorse will classify this as and capital lease Prepare a lease amortization schedule for this lease. (Round answers to O decimal places, eg. 5,275.) Date January 1, 2023 January 1, 2023 $ January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 Payment $ $ Interest Principal Balance