Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Phy

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Rand Medical manufactures lithotripters. Lithotripsy uses shockwaves instead of surgery to eliminate kidney stones. Physicians’Leasing purchased a lithotripter from Rand for $2,020,000 andleased it to Mid-South Urologists Group, Inc., on January 1, 2021.(FV of $1, PV of $1, FVA of $1, PVA of $1, FVADof $1 and PVAD of $1) (Use appropriatefactor(s) from the tables provided.)
Required:1. How should this lease be classified by Mid-SouthUrologists Group and by Physicians' Leasing?2. Prepare appropriate entries for bothMid-South Urologists Group and Physicians' Leasing from thebeginning of the lease through the second rental payment on April1, 2021. Adjusting entries are recorded at the end of each fiscalyear (December 31).3. Assume Mid-South Urologists Group leasedthe lithotripter directly from the manufacturer, Rand Medical,which produced the machine at a cost of $1.7 million. Prepareappropriate entries for Rand Medical from the beginning of thelease through the second lease payment on April 1, 2021.