Question: Current Attempt in Progress On January 1 , 2 0 2 7 , Carla Vista Inc. entered into an agreement to lease 2 0 computers

Current Attempt in Progress On January 1 , 2 0 2 7 , Carla Vista Inc. entered into an agreement to lease 2 0 computers from Drummond Electronics. The terms of the lease agreement require three annual rental payments of $ 4 0 , 0 0 0 ( including 1 0 % interest ) beginning December 3 1 , 2 0 2 7 . The present value of the three rental payments is $ 9 9 , 4 7 2 . Carla Vista considers this a finance lease. Prepare the journal entry to record the lease agreement on the books of Carla Vista Inc. on January 1 , 2 0 2 7 . ( Credit account titles are automatically indented when amount is entered. Do not indent manually. ) Date Account Titles and Explanation Debit Credit Jan. 1

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