Kingdom Leasing Inc. agrees to lease jousting equipment to Knight Inc

Kingdom Leasing Inc. agrees to lease jousting equipment to Knight Inc. on Jan 1,2012.  They agree on the following terms:      
      
1) The normal selling price of the jousting equipment is $325000 and the cost of the asset to Kingdom Leasing Inc. was $250000.   Fair Value 325000  
2) Knight will pay all maintenance,insurance,and taxes costs directly and annual payments of $60000 on Jan 1 each year.   Residual Value 30000  
3) The lease begins on Jan 1, 2012 and payments will be in equal annual installments.   Lease term 10  
4) The lease is noncancelable with no renewal option.  The lease terms is 10 years (the same as the estimated economic life).   Lease payments 60000  
5) At the end of the lease, the jousting ring will revert to Kingdom Leasing Inc. and have an unguaranteed residual value of $30000.  Their implicit interest rate is 10%.   manuf cost 250000  
6) Kingdom Leasing, Inc.  Incurred costs of  $6500 in negotiating and closing the lease.  There are no uncertainties regarding additional costs yet to be incurred and the collectibility of the lease payments is reasonably predictable.   lease neg 6500  
      
Required:   PV res value 11566.2  
a) Determine what type of lease this would be for the lessor and calculate the following: (show all work)     $238,434   
 Lease Receivable     
 Sales Price     
 Cost of Sales     
b) Prepare Kingdom's amortization schedule for the lease terms.      
c) Prepare all the journal entries for Kingdom for 2012.  Assume a calendar year fiscal year.      
      
2.