A company leases an asset for a 7-year period under a capital lease and agrees to pay an annual rental of $15,000. The initial entry to record this transaction, assuming the present value of the lease payments is $84,000, would include:

• Credit to Lease Liability for $12,000
• Debit to Lease Expense for $12,000
• Debit to Lease Expense for $15,000
• Debit to Lease Asset for $84,000