look at the file and answer the question as well please provide and exclamation of why this is the correct answer

1) Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians’ Leasing purchased a lithotripter from Rand for $2,040,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2021. (FV of $1 (Links to an external site.), PV of $1 (Links to an external site.), FVA of $1 (Links to an external site.), PVA of $1 (Links to an external site.), FVAD of $1 (Links to an external site.) and PVAD of $1 (Links to an external site.)) (Use appropriate factor(s) from the tables provided.)
   

Lease Description:   
Quarterly lease payments133,126—beginning of each period 
Lease term 5 years (20 quarters) 
No residual value; no purchase option   
Economic life of lithotripter 5 years 
Implicit interest rate and lessee’s incremental borrowing rate 12% 
Fair value of asset2,040,000 


Required:
1. How should this lease be classified by Mid-South Urologists Group and by Physicians’ Leasing?
2. Prepare appropriate entries for both Mid-South Urologists Group (Lessee) and Physicians’ Leasing (Lessor) from the beginning of the lease through the second rental payment on April 1, 2021. Adjusting entries are recorded at the end of each fiscal year (December 31).
3. Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $1.7 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2021.

Don't use plagiarized sources. Get Your Custom Essay on
look at the file and answer the question as well please provide and exclamation of why this is the correct answer
Just from $13/Page
Order Essay
Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
4.9
Sitejabber
4.6
Trustpilot
4.8
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code GOODESSAY