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Lahifi Leasing purchased a single-engine plane for $600,000 and leased it to Red Baron Flying Club for its fair value of $742,586 on January 1,2024. Note: Use tables, Excel, or a financlal calculator. (FV of \$1, PV of \$1, EVA or \$1. PVA of \$1, FVAD of \$1 and PVAD of \$1) Terms of the lease agreement and related focts were a. Eight annual payments of $130,000 beginning January 1, 2024, the beginning of the lease, and on each December 31 through 2030. Red Baron knows that Lohiri Leasing's implicit interest rate was 11\%. The estimated usefut life of the plane is eight years. Payments were colculated as follows: Amount to be recovered (fair value) \$ 742,586 Lease payments at the beginning of each of the next eight years: (5742,586+5.7122) 5139,0 - Present volue of an annuity due of $:n=8,1=11% b. Red Baron's incremental borrowing rate is 12% c. Incrementai costs of consummating the completed leose tronsaction incurred by Lahiri Leasing were $20,309. Required: 1. How should this lease be classified (o) by Lahiri Leasing (the lessor) and (b) by Red Boron (the lessee)? 2. Prepare the oppropriate entries for both Aed Baron Flying Club and Lahiri Leasing on January 1, 2024 3. Prepare an omonizotion schedule that describes the pottem of interest expense over the leose term for Red Baron Flying club 4. Prepare the appropnote entries for both Red Baron and tahir Leasing on December 31,2024 (the second lease payment): Goth. companies use straight ine depreciation or amortization. 5. Prepore the opproprate entries for both Red Baron and Lahirl Leasing on December 31, 2030 (the final lease payment) How should this lease be classified (a) by Lahiri Leasing (the lessor) and (b) by Red Baron (the lessee)? Note: Round your intermediate and final answers to nearest whole dollar. Prepare the appropriate entries for both Red Baron Flying Club and Lahiri Leasing on January 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar. Prepare the appropriate entries for both Red Baron Flying Club and Lahiri Leasing on January 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar. Journal entry worksheet 5 Record the lease payment for Red Baron Fiying Club. Woti Enter deblis before credits Prepare the appropriate entries for both Red Baron Flying Club and Lahiri Leasing on January 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld. Round your intermediate and final answers to nearest whole doliar. Journal entry worksheet 5 Record the beginning of the lease for Lahir Leasing. Wote: tanter debits belore erodits. Prepare the appropriate entries for both Red Baron Flying Club and Lahiri Leasing on January 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld. Round your intermediate and final answers to nearest whole dollar. Journal entry worksheet