Current Attempt in Progress Assume that 1BM leased equipment that was carried at a cost of $148,000 to Sandhill Company. The term of the lease is 7 years beginning December 31,2019 , with equal rental payments of $30,868 beginning December 31,2019 . The fair value of the equipment at commencement of the lease is $178,002. The equipment has a useful life of 7 years with no salvage value. The lease has an implicit interest rate of 7%, no bargain purchase option, and no transfer of title. Collectibility of lease payments for IBM is probable. Assume the sales-type lease was recorded at a present value of $178,002. Prepare IBM's December 31,2020, entry to record the lease transaction with Sandhill Compahy. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.s. 5.275. )