Wilson's manufactures industrial machinery. On January 1, 2022, Wilson's (lessor) agrees to lease machinery to Target (lessee). Both Wilson's and Target use private enterprise GAAP. The following information relates to the lease agreement. 1. The lease term is six years, with no renewal option, and the machine has a useful life of eight years. 2. The machinery's cost is $940,000 and the asset's fair value on January 1, 2022, is $1,200,000. 3. At the end of the lease term the asset reverts to Wilson's. The assets is expected to have a residual value of $240,000 at this time, and this value is guaranteed by Target. Target depreciates all equipment on a straight-line basis. 4. The lease agreement requires equal annual payments, beginning on January 1, 2022. 5. Wilson's assessed the credit of Target and determined the company was a regular credit risk for meeting its obligations. Target had been a good customer of Wilson's for a long time. Based on this Wilson decided to enter into the lease agreement using the implicit rate of 8% in setting the lease payments. Target is aware of this rate. 6. Wilson's determined that there are no additional costs it might have to incur in connection with this lease during the lease term. Required: a) Discuss the nature of this lease from both the viewpoint of the lessor and the lessee. In other words, what type of lease is this and explain why. Wilson's uses ASPE and Target uses IFRS 16. b) ONLY assume that the lease is a capital lease for both the lessor and the lessee: Calculate the lease payment Complete the following lease amortization schedule for the first three years of the lease or you may choose to show your calculations with your journal entries. *If you cannot calculate the lease payment, assume a payment of $120,000. c) Prepare all the necessary journal entries, including any year-end adjusting entries, for the lessee, Target for the following dates. d) Prepare all the necessary journal entries, including any year-end adjusting entries, for the lessor, Wilson's Company for the following dates.