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Answer to Part B needed. Please only use accounts from List of Accounts. Exercise...

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Accounting

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Answer to Part B needed. Please only use accounts from List of Accounts.

Exercise 21A-19 a-d (Part Level Submission) Ayayai Corporation leased equipment to Kingbird, Inc. on January 1, 2017. The lease agreement called for annual rental payments of $1,151 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of s9,900, a book value of $7,900, and Ayayai expects a residual value of $7,400 at the end of the lease term. Ayayai set the lease payments with the intent o earning a 4% return though Kingbird s unaware of the rate implicit in the lease and has an incremental borrowing rate of 6%. There is no bargain purchase option ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature each pe s ang ts e reicuai k h (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer is correct. Determine the nature of the lease to both Ayayal and Klngblrd operating lease to Kingbird. The lease is afan operatinglease to Ayayai The lease is a/an

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