Assume that IBM leased equipment that was carried at a cost of $159,000 to Blossom Company. The term of the lease is 6 years beginning December 31, 2019, with equal rental payments of $37,855 beginning December 31, 2019. The fair value of the equipment at commencement of the lease is $188,999. The equipment has a useful life of 6 years with no salvage value. The lease has an implicit interest rate of 8%, no bargain purchase option, and no transfer of title. Collectibility of lease payments for IBM is probable. Assume the sales-type lease was recorded at a present value of $188,999. Prepare IBM's December 31, 2020, entry to record the lease transaction with Blossom Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places e.g. 5,275.) Account Titles and Explanation Cash Lease Receivable Interest Revenue Save for Later Last saved 3 minutes ago. Debit 37855 Credit 12092 Attempts: 0 of 2 used Submit Answer