Brandy Borting an apreement on January 1, 2014, to ease office equipment for a year period. The estimate of the office equipment & years. The market value of the office wpment is 3235.000 The lease agreement calls for lease payments of 555,040 The payment is due on December 31, 204 strequent payments are made nach December 31 thereafter The interest rate stated in the case agreement is. The present value of the lease payments $219.758 At the end of the base term, the equipment reverts to the lesson Prepare yournal entries to record the lease agreement on juary 1.2004 the festlase payment on December 31, 2014 the montation of the leased a set on December 31, 2014 Answer Jan 1 Equipment Leasehold Capital Lease Liability Dec 31 interest Expense Capital Lease Liability Cash Dec 31 Leasehold Amortization Expense Equipment Leasehold