3. On January 1 2015, Microsoft leases a building for a new Microsoft store. The effective interest rate of the lease is 7% and annual payments required are $120,000 on December 31. The lease lasts 10 years and the building's fair market value on the date of the lease is $900,000. Record the journal entry Microsoft should make on January 1, 2015. The annual interest rate is 5%. Which of the following three options would you prefer? a $150,000 in 5 years b. $50,000 today and $80,000 in one year C. $20,000 each year for 6 years