On January $1,2020$ Devo Sciences, Inc. $($DSI$)$ and Lessee, Inc. sign a four year non$-$cancelable lease for equipment $($also the commencement date$).$ Details of the lease agreement follow:

The equipment has an estimated economic life of four years and DSI manufactured the equipment at a cost of $$160,000($carrying value in inventory$).$

DSI routinely leases this type of equipment to other companies.

The four lease payments are $$45,776,$ payable each January $1$ from $2020-2023.$

The fair value of the asset at lease commencement is $$180,000.$

The lease does not contain a renewal or purchase option, and the asset reverts to DSI at the end of the four$-$year period.

The contract requires Lessee, Inc. to guarantee the residual value of the equipment at the end of the lease for $$10,000.$

DSI's rate implicit in the lease is $4\mathrm{.}5\%,$ Lessee's incremental borrowing rate is $6\%.$

DSI is a calendar year$-$end company.

DSI incurred $$800$ in legal fees, paid in cash on January $1,2020.$

Required $($from the lessor, DSI's$)$ perspective:

a$.$ Determine the appropriate lease classification.

b$.$ Confirm the $$45,776$ lease payment amount $($rounded$).$

c$.$ Calculate the lease receivable.

d$.$ Record initial direct costs.

e$.$ Prepare a lease amortization schedule.

f$.$ Prepare DSI's journal entries for $2020,$ apart from initial direct costs.

g$.$ Show the impact on DSI's balance sheet and income statement for $2020.$

h$.$ Prepare DSI's journal entries for $2021.$

i$.$ Show the impact on DSI's balance sheet and income statement for $2021.$

j$.$ Prepare DSI's journal entries for $2023,$ first assuming that the equipment returned by Lessee, Inc. had a fair value of $$7,500.$

k$.$ How would your answers to f$.$ and j$.$ above differ if the residual value were unguaranteed?