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3 Bidwell Leasing purchased a single-engine plane for its fair value of $645,526 and leased it to Red Baron Flying Club on January 1 2018.(FV of $1, PV of $1. FVA of $1, PVA of S1. FVAD of $1 and PVAD of $) (Use appropriate factor(s) from the tables provided.) Terms of the lease agreement and related facts were: 3.34 oints a. Eight annual payments of $110,000 beginning January 1, 2018, the beginning of the lease, and at each December 31 through 2024, Bidwell Leasing's implicit interest rate was 10%. The estimated useful life of the plane is eight years. Payments were calculated as follows: eBook Ask Print References 8645, 526 Amount to be recovered (fair value) Lease paymenta at the beginning of each of the next eight yearai s110.000 (6645,5265.86842*) "Present value of n annuity due of St n-8, i-10%. b. Red Baron's incremental borrowing rate is 11%. c ncremental costs ofnegotiating costs o negotiating and consummating the completed lease transaction incurred by id e Leasing were $18,099. Required: 1. How should this lease be classified (a) by Bidwell Leasing (the lessor) and (b) by Red Baron (the lessee)? 3 c. Incremental costs of negotiating costs of negotiating and consummating the completed lease transaction incurred by Bidwell Leasing were $18,099 Required: 1. How should this lease be classified (a) by Bidwell Leasing (the lessor) and (b) by Red Baron (the lessee)? 2. Prepare the appropriate entries for both Red Baron Flying Club and Bidwell Leasing on January 1, 2018 3. Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Red Baron Flying Club 33.34 points rate of interest for Bidwell Leasing for the purpose of recognizing interest revenue over the lease term. 5. Pr eBlook Ask Print Refeeences epare an amortization schedule that describes the pattern of interest revenue over the lease term for Bidwell Leasing. 6. Prepare the appropriate entries for both Red Baron and Bidwell Leasing on December 31, 2018 (the second lease payment), Both companies use straight-line depreciation 7. Prepare the appropriate entries for both Red Baron and Bidwell Leasing on December 31, 2024 (the final lease payment) Both companies use straight-line depreciation Complete this question by entering your answers in the tabs below Requred 1 Required 2 Required 3 Reqird Required Required 6 Required 7 Prepare the appropriate entries for both Red Baron and Bidwell Leasing on 3 Round your intermediate and final answers to nearest whole dollar.) use straight-line depreciation. QIf no entry is reqiedforrnmber 31, 2024 (the final lease payment). Both companies use straight-line depreciation. (If no entry is required for a transaction/event, select "No Joumal entry required" in the first account held 3 Bidwell Leasing purchased a single-engine plane for its fair value of $645,526 and leased it to Red Baron Flying Club on January 1 2018.(FV of $1, PV of $1. FVA of $1, PVA of S1. FVAD of $1 and PVAD of $) (Use appropriate factor(s) from the tables provided.) Terms of the lease agreement and related facts were: 3.34 oints a. Eight annual payments of $110,000 beginning January 1, 2018, the beginning of the lease, and at each December 31 through 2024, Bidwell Leasing's implicit interest rate was 10%. The estimated useful life of the plane is eight years. Payments were calculated as follows: eBook Ask Print References 8645, 526 Amount to be recovered (fair value) Lease paymenta at the beginning of each of the next eight yearai s110.000 (6645,5265.86842*) "Present value of n annuity due of St n-8, i-10%. b. Red Baron's incremental borrowing rate is 11%. c ncremental costs ofnegotiating costs o negotiating and consummating the completed lease transaction incurred by id e Leasing were $18,099. Required: 1. How should this lease be classified (a) by Bidwell Leasing (the lessor) and (b) by Red Baron (the lessee)? 3 c. Incremental costs of negotiating costs of negotiating and consummating the completed lease transaction incurred by Bidwell Leasing were $18,099 Required: 1. How should this lease be classified (a) by Bidwell Leasing (the lessor) and (b) by Red Baron (the lessee)? 2. Prepare the appropriate entries for both Red Baron Flying Club and Bidwell Leasing on January 1, 2018 3. Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Red Baron Flying Club 33.34 points rate of interest for Bidwell Leasing for the purpose of recognizing interest revenue over the lease term. 5. Pr eBlook Ask Print Refeeences epare an amortization schedule that describes the pattern of interest revenue over the lease term for Bidwell Leasing. 6. Prepare the appropriate entries for both Red Baron and Bidwell Leasing on December 31, 2018 (the second lease payment), Both companies use straight-line depreciation 7. Prepare the appropriate entries for both Red Baron and Bidwell Leasing on December 31, 2024 (the final lease payment) Both companies use straight-line depreciation Complete this question by entering your answers in the tabs below Requred 1 Required 2 Required 3 Reqird Required Required 6 Required 7 Prepare the appropriate entries for both Red Baron and Bidwell Leasing on 3 Round your intermediate and final answers to nearest whole dollar.) use straight-line depreciation. QIf no entry is reqiedforrnmber 31, 2024 (the final lease payment). Both companies use straight-line depreciation. (If no entry is required for a transaction/event, select "No Joumal entry required" in the first account held

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