Winston Industries and Ewing inc. enter into an agreement that requires Ewing Inc. to build three diesel-electric engines to Winston's specifications. Upon completion of the engines, Winston has agreed to lease them for a period of 10 years and to assume all costs and risks of ownership. The lease is non-cancelable, becomes effective on January 1, 2020, and requires annual rental payments of $384,532 each January 1, starting January 1, 2020. Winston's incremental borrowing rate is 8%. The implicit interest rate used by Ewing and known to Winston is 6% The total cost of building the three engines is $2,600,000. The economic life of the engines is estimated to be 10 years, with residual value set at zero Winston depreciates similar equipment on a straight-line basis. At the end of the lease, Winston assumes title to the engines Collectibility of the lease payments is probable. Click here to view factor tables. (a) Discuss the nature of this lease transaction from the viewpoints of both lessee and lessor. The lease should be treated as a by Winston Industries The lease should be treated as a e Textbook and Media List of Accounts Save for Latur Attempts: 0 of 4 used Suami An (b), (c) and (d) The parts of this question must be completed in order. This part will be available when you complete the part above