On January 2, 2018, Sylvester Metals Co. leased a mining machine from EDH Leasing Corp. The lease qualifies as an operating lease. 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 Lease Liability 40,000

b. Prepaid Rent \(\quad 40,000\) Lease Liability 40,000

c. Prepaid Rent 4,000 Lease Liability 4,000

d. No entry is necessary.