Brief Exercise 21A-10 Your answer is partially correct. Assume that IBM leased equipment that was carried at a cost of $148,000 to Ivanhoe Company. The term of the lease is 5 years December 31, 2016, with equal rental payments of $41,984 beginning December 31, 2016. The fair value of the equipment at commencement of the lease is $178,001. The equipment has a useful life of 5 years with no salvage value. The lease has an implicit interest rate of 9%, no bargain purchase option, and no transfer of title. Collectibility of lease payments for IBM is probable. Prepare IBM's December 31, 2016, journal entries at commencement of the lease. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places e.g. 5,275.) Account Titles and Explanation Debit Credit December 31, 2016 Lease Receivable 178001 Cost of Goods Sold 148000 Sales Revenue 178001 148000 (To record the lease) December 31, 2016 Lease Liability 41984 Cash 41984 (To record receipt of lease payment)