11. On January 1 , 2021 , Santee Company leased equipment , with a fair value of $ 25,771 ( cost of $ 20,000 ) , to Bellimoso Company under a 3-year lease. The economic life of the asset is 4 years . The present value of the lease payments equals $ 25,771 and $ 10,000 in annual lease payments are due at the end od each year of the lease. An implied rate of 8 % is assumed . When Bellimoso makes the first lease payment on December 31 , 2021 , what entry will the lessee record? A,B, C, or D

\begin{tabular}{|l|l|r|r|} \hline & & Debit & \multicolumn{1}{|c|}{ Credit } \\ \hline & Lease liability & 10,000 & \\ \hline & Cash & & 10,000 \\ \hline & & Debit & Credit \\ \hline & Lease liability & 7,938 & \\ \hline & Interest expense & 2,062 & \\ \hline & Cash & & 10,000 \\ \hline & & Debit & Credit \\ \hline & Lease liability & 9,200 & \\ \hline & Interest expense & 800 & \\ \hline & Cash & & 10,000 \\ \hline & & Debit & Credit \\ \hline & Lease liability & 10,000 & \\ \hline & Interest payable & & 2,862 \\ \hline & Cash & & 7,138 \\ \hline \end{tabular}