I am looking for the calculation needed to write the memo and the main points, no need to write a entire memo. thank you.

You are auditing the December 31, 2018, nancial 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, 2018, 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. The lease has a5 years term. 2. Rental of $5,680 per year (at the beginning of each year). 3. Estimated economic life of the truck is 7 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 audit, to discuss the above situation. Please write a onepage memo to answer the following questions: 1) Identies the problems and related issues. 2) Do you need any additional information to make decision regarding the type of the lease? Please make assumption(s) and discuss how the alternative assumption(s) may affect the lease classication. 3) Based on your assumption(s), how would you adiaised your client to account for this lease? Explain every journal entry that you believe is necessary to record this lease properly on the client's books