Will Smith Corporation leases an asset to Chris Rock Company for 10 years beginning January 1, 2020, at an annual rental of $5,000. Will Smith's implicit borrowing rate is 10% and is known to Chris Rock; Chris Rock's implicit borrowing rate is 11% and is known to Will Smith. The first payment is due at the beginning of the first year. The asset's economic life is 12yrs and the fair value of the asset at the inception of the lease is $34,000. The lease requires Chris Rock to pay $840 in annual executory costs and fees. The lease does NOT transfer ownership and does NOT contain a bargain purchase option. The PV of an annuity due (beginning) of 1 for 10pds at 10% = 6.759 The PV of an annuity due (beginning) of 1 for 10pds at 11% = 6.537 (a) Is this an Operating Lease or a Capital Lease? WHY? (b) What is the PV of the Minimum Lease Payments for the lease? (c) What is the JE (if any) for Chris Rock to record this lease? (d) What is the JE (if any) for Chris Rock to record DEPRECIATION on the leased asset? Explain your answer. Chris Rock uses straight-line depreciation and $0 salvage value for all the company's depreciable assets