My Subscriptions Michael One Question 1 Partially correct Mark 8.00 out of 18.00 P Flag question Recording Sales-Type Lease Journal Entries- No Residual Value Franklin Co. leased its manufactured equipment to Parker Inc. for a 4-year term. Franklin Co, reported a book value of 143,000 for the equipment in its inventory account The lease commenced on January 1, 2020, with the first annual payment of $48.100 due immediately. The equipment has a useful life of 4 years, an estimated fair value of $179,088, and no residual or salvage value. The implicit rate of the lease is 5% and collectibility of the lease payments from Parker is probable. Record Franklin's journal entries at the commencement of the sales-type lease. Note: Round your answers to the nearest whole dollar. . Note: List multiple debits or credits (when applicable) in alphabetical order Date Account Name Jan 1, 2020 Lease Liability Equipment 179,08 Inventory Accumulated Depreciation To derecognize asset and record investment in lease 48,100 Jan 1, 2020 Lease Expense Depreciation Expense To record cash lease payment Cr Dr. 179,088 X OX 0 X O OX O OX O 0 48,100 Check You have correctly selected 8