On January $2,2022,$ Sylvester Metals Co$.$ leased a mining machine from EDH Leasing Corp. Assume the lease qualifies as an operating lease under ASPE standards. The annual payments are $$4,000$ paid at the end of each year, and the life of the lease is $10$ years. What entry would Sylvester make when the machine is delivered by EDH?

a$.$

Leased Assets$40,000$

Prepaid Rent$40,000$

b$.$ No entry is necessary.

c$.$

Leased Assets$40,000$

Lease Liability$40,000$

d$.$

Prepaid Rent$40,000$

Lease Liability$40,000$