Brandy Botting signs an agreement on january 1, 2014, to lease office equipment for a 5-year period. The estimated used the of the office equipment years. The market value of the office ment is $235,000. The lease agreement calls for lease payments of $55,040. The first payment is due on December 31, 2014, at subsequent payments are made sach December 31 thereater The interest rate stated in the lease agreement is t. The present value of the lease payments is $218758 At the end of the lease term, the eppment reverts back to the Prepare journal entries to record the lease agreement on January 1, 2014 b. the first lease payment on December 31, 2014 cthe amortization of the leased asset on December 31, 2004 Answer a Jan. 1 Equipment Leasehold Capital Lease Liability b Dec. 31 Interest Expense Capital Lease Liability Cash L Dec. 31 Leasehold Amortization Expense Equipment Leasehold Submit Pause test