16. On January 1 , 2021 , Santee Company leased equipment , with a fair value of $ 25,771 and 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 of the lease . An implied rate of 8 % is assumed . What entry does the lessor make on January 1 , 2021? A,B,C,orD

\begin{tabular}{|l|l|c|c|} \hline & & Debit & Credit \\ \hline & Cash & 10,000 & \\ & Lease receivable & & 10,000 \\ \hline & & Debit & Credit \\ \hline & Lease receivable & 25,771 & \\ \hline & Cost of goods sold & 20,000 & \\ \hline & Sales revenue & & 25,771 \\ \hline & Inventory & & 20,000 \\ \hline & & Debit & Credit \\ \hline B & Lease receivable & 25,771 & \\ \hline & Gross profit & & 5,771 \\ \hline & Inventory & & 20,000 \\ \hline \hline & & Debit & Credit \\ \hline & Cash & 10,000 & \\ \hline & Cost of goods sold & & 10,000 \\ \hline & Sales revenue & & 20,000 \\ \hline & Inventory & & \\ \hline \end{tabular}