Big Cheese Co. (lessor) leased an asset on January 1, 2029, to Little Cheese Co. (lessee). The lease agreement calls for eight annual lease payments of $60,000 beginning on the commencement date. The interest rate implicit in the lease is 7%; however, Little Cheese cannot readily determine this. Little Cheese's incremental borrowing rate is 6%. The asset has an estimated value of $30,000 at the end of the lease; however, this is not guaranteed. Little Cheese must return the asset to the lessor at the end of the lease. The leased equipment has an estimated useful life of 10 years and no residual value at that time. Little Cheese paid its lawyers $4,000 to review the lease agreement (initial direct costs). Little Cheese uses the straight-line method to depreciate similar equipment that it owns and has a December 31 year end. What is amount of ROU asset Little Cheese would set up at inception of the lease (IM)? Record the journal entries for SM