On january 1, 2014, hayes, inc. leases equipment from smithsonian company for an annual lease rental of $25,000. the lease term is five years, and the lessor's interest rate implicit in the lease is 8%. the lessee's incremental borrowing rate is 8.25%. the useful life of the equipment is five years, and its estimated residual value = its removal cost. annuity tables indicate that the present value of an annual lease rental of $1 (at 8% rate) is $3.993. the fair value of leased equipment = the present value of rentals. (assume the lease is capitalized.)required: prepare accounting entries required by hayes, inc. for 2014.compute and illustrate the effect on the income statement for the year ended december 31, 2014, and for the balance sheet as of december 31, 2014.construct a table showing payments of interest and principal made every year for the five-year lease term. construct a table showing expenses charged to the income statement for the five-year lease term if the equipment is purchased. show a column for (1) amortization, (2) interest, and (3) total expenses. in one paragraph, discuss the income and cash flow implications from this capital lease.

2. activities included (and not included) in the calculation ofgdp the gross domestic product (gdp) of the united states is defined as the all in a given period of time. based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the gdp of the united states in 2017. scenario 2017 gdp included excluded calculo, a u.s. electronics company, produces a calculator at a plant in indonesia on march 17, 2017. calculo imports the calculator into the united states on may 21, 2017. awake cafe, a u.s. coffee company, produces a latte at its location in minneapolis on january 9, 2017. it sells the latte to a customer immediately. fastlane, a japanese automobile company, produces a sedan at a plant in indiana on december 12, 2017. a family buys the sedan on december 24. you chop down a cherry tree on your property in california and make a dining room table in 2017. a similar table sells for $800 in a local furniture store. graincorp, a u.s. agricultural company, produces corn syrup at a plant in iowa on september 19, 2017. it sells the corn syrup to crunchy's for use in the production of cereal that will be made in the united states in 2017. (note: focus exclusively on whether production of the corn syrup increases gdp directly, and ignore the effect of production of the cereal on gdp.)