(Chapter 21) On January 1, 2020, Toyota leased manufacturing equipment with a useful life of 8 years to Audi. Terms of the lease include monthly payments of $19,500 for 4 months, payable on the first of each month beginning on January 1, 2020. Both the implicit and incremental rates are 7%, both companies use straight-line depreciation, and the equipment will be returned to Toyota at the end of the lease. Which of the following statements is correct? The December 31, 2020 carrying value of Audi's Right of Use asset is $53,006. Audi's 2020 Lease Expense is $78,000. Audi's 2020 Lease Expense is $19,500. Audi will record an initial carrying value for the Right of Use asset of $70.674