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Macedonia Ltd leases mechanical robots that work mechanically without original thought to a variety of business customers under long-term direct finance leases

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Macedonia Ltd leases mechanical robots that work mechanically without original thought to a variety of business customers under long-term direct finance leases. Macedonia's implicit rate under these arrangements is 10%. Macedonia leased a robot it purchased for $30,900 to a local publisher, Barbuda Ltd, on Dec 31, 2020. The lease contract specified the first annual payment $8,000 was payable on Jan 1, 2021, the commencement of the lease, and each Jan 1 through 2023. The publisher had the option to purchases the robot on Dec 31, 2023, the end of the lease term, for $12,000 when it was expected to have a market value of $19,000. The robot had a useful life of 5 years and both used the straight-line method for depreciation. Requirement Students are required to prepare the lease amortization table based on the information given in the question in the space below: 1. What criterion is met so as to classify the lease as a finance lease? 2. How the lessor records the lease on Jan 1, 2021, the commencement of the lease: 3. How the lessor records the collection of the lease payment on Jan 1, 2022? 4. How the lessor records the accrual of interest revenue on Dec 31, 2022? 5. How the lessor records the collection of the bargain purchase option price on December 30, 2023. the end of the lease? 6. Let's assume Macedonia manufactured the robot under the lease at a cost of $26,000 instead of purchase. What is the dealer's profit? Show calculation. 7. What is the annual depreciation expense charged to the income statement? Show calculation. 8. How the lessee records the lease on Jan 1, 2021, the commencement of the lease: 9. How the lessee records the annual lease payment on Jan 1, 2022? 10. How the lessee records the payment of the bargain purchase option price on December 31, 2023, the end of the lease?