Please show work, partial credit can only be given to those that show their work. Problem 1: Gingerbread Man Inc., as lessee, enters into a lease agreement on June 1, 2024, for a fox costume with Costume Inc. The following data are relevant to the lease agreement: The term of the noncancelable lease is 8 years, with no renewal option. Payments of $168,000 are due at the beginning of each year, starting today. The fair value of the costume is $1,080,000 (it's a pretty unique costume). The costume has an economic life of 10 years with no guaranteed salvage value. Gingerbread Man depreciates similar costumes on a straight-line basis. Gingerbread Man's incremental borrowing rate is 7% per year and the implicit rate is unknown. The costume cost Costume Inc. $870,000. Required: (a) Indicate the type of lease Gingerbread Man Inc. has entered into. (2 points) (b) Prepare a partial amortization schedule for the lessee that goes up to 6/1/26. (4 points) Date Lease payment interest expense reduction in liability lease liability 6/1/24 6/1/24 6/1/25 6/1/26 (c) Write the journal entries on Gingerbread Man's books that relate to the lease agreement for the following dates: 6/1/24 (2 JE's), 12/31/24 (financial statement date) (2 JE's), and 6/1/25 (1 JE). (2 points each) ACC 323 Page 2 of 4 (d) Wroite the journal entries on Costume In's books that relate to the lease agreement for the following date: 6/1/24 (2 JEs), 12/31/24 (financial statement date) (1 JE), and 6/1/25 (1 JE). (2 points each)