Question $1($Lease with guaranteed residual value $$ from lessor$$s perspective$)$

On January $1,2024,$ Pedro Industries leased equipment to Kylie Co$.$ for a four$-$year period, at which time possession of the leased asset will revert back to Pedro. The equipment cost Pedro $$365,760$ and has an expected useful life of six years. Its normal sales price is $$365,760.$ The lessee$-$guaranteed residual value at the end of the lease is $$25,000,$ which is the amount Kylie expects to pay at the end of the lease. Equal payments under the lease are $$100,000$ each year, payable in advance on December $31$ each year except for the first one on January $1,2024.$ Kylie$$s incremental borrowing rate is $12\%.$ Kylie knows the interest rate implicit in the least payments is $10\%.$ Both companies use straight$-$line depreciation.

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Required:

$1.$ Show how Pedro calculated the $$100,000$ annual lease payments.

$2.$ What is the nature of this lease to Pedro $($the lessor$)?$ Explain.

$3.$ Prepare the appropriate entries for Pedro $($the lessor$)$ to record the lease and the lease payment at its inception. Show calculations.