Assume that a company leases equipment for a 5-year period under a capital lease and agrees to pay an annual rental of $16,000 at the end of each year. If the present value of the lease payments is $59,200, the entry to record the leasing transaction would include:

• A credit to Rent Payable of $16,000
• A debit to Leased Equipment of $80,000
• A debit to Lease Expense of $59,200
• A debit to Leased Equipment of $59,200