The Following Are Characteristics of a Lease Requirement
Determine the Appropriate Classification for This Lease for the of leased

The following are characteristics of a lease:
$\begin{array}{|l|l|}\hline\text { Price of leased asset from manufacturer } & 193,000 \\\hline \text { Lease payments } & 50,000 \\\hline \text { Lease term } & 5 \text { years } \\\hline \text { Lease frequency } & \text { Annual } \\\hline \text { Payment timing } & \text { End of year } \\\hline \text { Guaranteed residual value } & 35,000 \\\hline \text { Interest rate implicit in the lease agreement } & 14 \%\\\hline\end{array}$ Requirement
Determine the appropriate classification for this lease for the lessor (who is not the manufacturer)and record the journal entries for the lessor for the first year of the lease.