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Crane Inc. leased a new crane to Blue Construction under a 5-year, non-cancelable contract starting...

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Crane Inc. leased a new crane to Blue Construction under a 5-year, non-cancelable contract starting January 1, 2025. Terms of the lease require payments of $46,500 each January 1, starting January 1,2025. The crane has an estimated life of 7 years, a fair value of $230,000, and a cost to Crane of $230,000. 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 Crane and Blue adjust and close books annually at December 31 . Collectibility of the lease payments is probable. Blue's incremental borrowing rate is 9%, and Crane's implicit interest rate of 9% is known to Blue. Click here to view factor tables. Identify the type of lease involved. The lease is classified as an Prepare all the entries relaled to the lease contract and leased asset for the vear 2025 far the lessee and lensor, asuaring Bhie

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