You are auditing the December 31, 2017,financial statements of Atlantic, Inc, manufacturer of water toys. During your inspection of the company garage, you discovered that a used truck not listed in the equipment subsidiary ledger is parked there. You ask the plant manager, about the vehicle, and she tells you that the company did not list the truck because the company was only leasing it. The lease agreement was entered into on January 1, 2017, with Rent-a-Truck Center You decide to review the lease agreement to ensure that the lease should be afforded operating lease treatment, and you discover the following lease terms. 1. Noncancellable term of 5 years. Bes 2. Rental of $5,680 per year (at the autof each year). (The present value at 10% per year is S21,532.) 3. Estimated economic life of the truck is 6 years. 4. Atlantic's incremental borrowing rate is 10% per year. Instructions You are a senior auditor writing a memo to your supervisor, the audit partner in charge of this iscuss the above situation. Please write a one-page memo and explain () why you inspected the lease agreement, (b) what you determined about the lease, and (o) how you advised your client to accoun record this lease properly on the client's books. t for this lease. Explain every journal entry that you believe is necessary to