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On January 1,2017, Adams Corporation signed a 5-year non-cancelable lease for a machine. -The terms...

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On January 1,2017, Adams Corporation signed a 5-year non-cancelable lease for a machine. -The terms of the lease called for Adams to make annual payments of $45,000 beginning on January -The machine has an estimated useful life of 6 years and with an unguaranteed residual value of -Adams uses the straight-line method of depreciation for all of its plant assets. 1,2017 $5,000. Adams's incremental borrowing rate is 6% per year. The lessor's implicit rate is not known by Adams. Answer the following questions: a) What type of lease is this and why? (1 point) b) How much is the present value of minimum lease payments? (3 points) Fill out lease amortization schedule CAnnuity-due basis 6 points Annual Lease Pa ent Interest on Liability Reduction of Lease Liability Le Lease Liabi Jan 1, 17 1/1/2017 1/1/2018 1/1/2019 1/1/2020 1/1/2021 d) Record Adams' lease related journal entries on Jan 1, 2017. (2 points) e) Record Adams' lease related journal entries on Dec 31, 2017. (4 points) f) Record Adams' lease related journal entry on Jan 1, 2018. (4 points)

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