Zarle Company, as lessee, enters into a lease agreement on July 1, 2018, for equipment. The following data are relevant to the lease agreement: a. The term of the noncancelable lease is 4 years, with no renewal option. Payments of b. The fair value of the equipment on July 1, 2018 is $3,500,000. The equipment has an economic life of 6 years with no salvage value. c. Zarle depreciates similar machinery it owns on the sum-of-the-years'-digits basis. d. The lessee pays all executory costs. Zare's incremental borrowing rate is 10% per year. The lessee is aware that the lessor used an implicitrate of826 in computing the lease payments (present value factor for 4 periods at 896, 3.577 10, at 10%, 3.48685). e Instructions (a) Indicate the type of lease Zane Company has entered into and what accounting treatment is (b) Prepare the journal entries on Zarke's books that relate to the lease agreement for the following applicable dates: (Round all amounts to the nearest dollar. Include a partial amortization schedule.) 1. July 1, 2018. 2. December 31, 2018 3. July 1, 2019 4. December 31, 2019. Can