A Moving to another question will save this response. Question 3 On January 1, 20X4, Solarcom Inc. entered into a new lease for equipment with the following terms: Annual lease payment due on January 1,20x4 for $55,000. Included in the lease payment is $3,000 for insurance and maintenance costs. The lease term is seven years. At the end of the lease there is a guaranteed residual amount of $10,000, which Solarcom expects it will pay. The lease has an implied interest rate of 6.1%, which is known to Solarcom. Solarcom has a calendar year. Useful life of the asset 10 year. Fair value of the asset at the time of inception of lease is $314,000 Required 1. Determine the classification of the lease. 2. Prepare all the journal entries for 20x4 related to this lease. Note that M Solarcom has a December 31 year end. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 14px A V !!! III V 2 . TT 99 92 . , E. HE EXPEH (6) P Moving to another question will save this response