Would you mind to help me answer question from a to d

n 120 points) Krause Company on January 1, 2018, enters into a nine-year noncancelable lease for equipment estimated useful life of 10 years and a fair value to the lessor, Daly Corp., at the inception ot $4,000,000. Krause's incremental borrowing rate is 8%. Krause uses the straight-line method to ae its assets. The lease contains the following provisions: 1. Rental payments of s266,000 for property taxes, payable at th 2. An option allowing the lessor to extend the lease one year beyond the lease term. 3. A guarantee by K having an of the lease of e beginning of each six-month peri od. expiration of the lease. However, the rause Company that Daly Corp. will realize $200,000 from selling the asset at the actual residual value is expected to be $120,000. Instructions (a) What kind of lease is this to Krause Company? Briefly explain. What should be considered the lease term? Briefly explain. What is the present value of the lease payments (1) for classification of the lease and (2) for measurement of the lease liability? (PV factor for annuity due of 20 semi-annual payments at 8% annual rate, 14.13394; PV factor for amount due in 20 semi-annual interest periods at 8% annual ate,.45639.) (Round to nearest dollar.)