Annual payments = $48,750 Purchased for / Fair Market Value of property at inception = $348,500 Payments begin 1/1/X3 Lease term = 4 years Estimated economic life = 6 years Annual interest rate = 2% Year end is December 31 The lease is non cancelable. There are no options to purchase or renew. The leased asset reverts back to the leasing company at the end of the lease. The leasing company routinely lease this type of property. Consider the journal entry required by the LESSEE at the inception of the lease. The credit should be to what ACCOUNT (name of account)