Recording Entries for Finance Lease: Lessee Lessory Corporation, a manufacturer of equipment, enters into a lease of specialized equipment with LesseeX Corp. Title to the asset remains with Lessory Corp upon lease expiration. Lesseex Corp does not guarantee the residual value of the specialized equipment at the end of the lease term, and the lease contains no renewal or purchase options. The following information pertains to the lease. Legse term 5 years Economic life of the lessed cruipment 6 years Annual lease payments $2,745 $ Payment date Annually on January 1 Fair value of the leased equipment $13,000 Lessory Corp's carrying value of the leased equipment $11,250 Rate implicit in the lease known by lessee) Estimated fair value of the equipment at the end of the lease term $1,000 a. Determine the classification of the lease to LessceX Corporation 6.07 Amortization schedule Journal Entries b. Prepare an amortization schedule of the lease liability • Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. • Note: Include any net rounding difference to Lease Liability in the interest on Liability amount for Jan. 1, 2024. Lease Interest Reduction of Date Payment on Liability Lease Liability Lease Liability Jan. 1. 2020 S Jan. 1.2020 $ $ $ Jan. 1. 2021 Jan, 1.2022 Jan. 1.2023 Jan. 1.2024 Total $ $ 1