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Cullumber Inc. leased a new crane to Bramble Construction under a 5-year, non-cancelable contract starting January 1, 2025. Terms of the lease require payments of $45,000 each January 1 , starting January 1,2025 . The crane has an estimated life of 7 years, a fair value of $220,000, and a cost to Cullumber of $220,000. The estimated fair value of the crane is expected to be $40,000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Cullumber and Bramble adjust and close books annually at December 31. Collectibility of the lease payments is probable. Bramble's incremental borrowing rate is 8%, and Cullumber's implicit interest rate of 8% is known to Bramble. (a) Your answer is correct. Identify the type of lease involved. The lease is classified as an eTextbook and Media List of Accounts Attempts: 2 of 5 used Prepare all the entries related to the lease contract and leased asset for the year 2025 for the lessee and lessor, assuming Bramble uses straight-line amortization for all similar leased assets, and Cullumber depreciates the asset on a straight-line basis with a salvage value of $15,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is

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