On January 2, 2021, Blossom Leasing Company leases equipment to Brick Co. with 5 equal annual payments of $170000 each, payable beginning January 2, 2021. Brick Co. agrees to guarantee the $171500 residual value of the asset at the end of the lease term. The expected value of the residual value is $61500. Brick's incremental borrowing rate is 11%, however it knows that Blossom's implicit interest rate is 9%.

What journal entry would Brick Co. make at January 22021 to record the lease?

PVAnnuityDue PVOrdinaryAnnuity PVSingleSum 9%, 5 periods 4.23972. 3.88965. 0.64993 11%, 5 periods 4.10245. 3.69590 0.59345

A. Right-of-Use Asset 720752

Cash170000

Lease Liability 550752

B. Right -of -Use Asset 732733

Cash 170000

Lease Liability 562733

C. Right -of -Use Asset 622245

Lease liability 622245

D. Right -of -Use Asset 792245

Cash 170000

Lease liability 622245