Quar Reporting Finance Lease, Guaranteed Residual-L Mg Company deson and Ash Corporation pesset signed a four year lane on january 1 of Year 1. The underlying wat has an estimated ife

of six years and falus of 150000, and the property reverts to Mac at the end of the lease tem. Leve payments of $11,023 are payable on January 1 af sach year beging at the lease commencement and are set to greld Mac a return of in which is known to Ash. The estimated residual value of the end of the lease term $10000 and is guaranteed by Ash Corporation. Aah expects the residual value at the end of the lease term to be $10,000. The lease contains no parche aption Required How would A Corporation classity the lease? what the lease labiety belance on January 1, the lene commencement date? Nate Hound your answer to the nearest whole dolar. $0 for Ash Corporation on January 1 and December 31 of Year 1. Note: Round your answers to the neweet whole dolar. Prepare the Date Jan 1, 1 Jan 1, Year 1 Dec 31, Year 1 Dec 31, 1 J. 1. Year 1 M100 Jon 1,1 Dec.31. Y Dec. 31, Year 1 To Acc Name Tandbe Ta recard amation V 1erd han V << << V V Dr. V 0 0 DO 0 CO 0 D D D Assume that Ash Corporation expects the residual value at the end of the lease berm to be $3.500. Prepere the entries for Ash Corporation on January 1 and December 31 of Year 1. . Note: Round your answers to the nearest whole daler. d 0 0 0 0 0 Cr DO D Cr. D D D GO 0 0 0 a 0 0 0 0 0 0 0