A company has entered into a lease agreement for a piece of equipment. The lease term is 5 years, and annual lease payments are $20,000, payable at the beginning of each year. The implicit interest rate for the lease arrangement is 6%. At the end of the lease term, the company has the option to purchase the equipment for a bargain price of $10,000. Additional information: 4 years 5 years present value factor for 6% 0.7921 0.7473 present value annuity factor for 6% 3.7908 4.2124 Required: i. Calculate the present value of the lease liability ii. (Calculate the fair value of the right-of-use asset iii. Provide necessary journal entries recording transactions in the books of lessee at the inception of the lease and at the end of the first year (narrations are not required).