3 points Save Answer On January 1, 2020, Sparrow sold equipment to Turner for $140,000 and immediately leased it back. The carrying value of the equipment is $112.000 (original cost $200,000). The term of the lease is 3 years and there is no purchase option Title does transfer to Sparrow at the end of the lease. The lease requires three equal rental payments of $34.784 at the end of each year. The appropriate rate of interest is 6, the equipment has a useful life of 5 years, and the present value of lease payments is $92,978. At January 1, 2020. Sparrow would recorda Right of Use Asset of $92,978 Gain on the sale of Equipment of $28,000. Note Payable of $140,000 Cash Payment of $34,784