Check all that apply and prepare journal entries for the lesser at the commencement of the lease.

I Haulers Co. signed a lease on January 1 with Gandolni Bankfor a garbage truck. The truck is not specialized in nature. The lease has a 10-year term with no purchase option or transfer of ownership. Under the terms of the contract, Haulers must pay $16,500 on January 1 of each year. The truck has an economic life of 40 yea rs and a fair value of $173900. if Haulers borrowed at NxJ Bank,the loan would carry an interest rate of 7%, which implies that the present value of the payments due under the lease is $124,000. The expected residual value at the end of the lease term is $96900. The lessee guarantees the entire residual value. The lessee and the lessor do not incur any initial direct costs. The carrying value of the truck in Gandolni Bank's inventory was $112,000. Prepare the journal entries for the lessor at the commencement of the lease. Check all of the answers that apply. Dr. Net investment in the lease - sales-type -- $173,000 Dr. Cost of goods sold -- $16,000 Cr. Sales revenue -- $124,000 Dr. Cost of goods sold -- $112,000 Cr. Sales revenue -- $173,000 Dr. Net investment in the lease - sales-type -- $124,000 Dr. Net investment in the lease - direct financing -- $173,000 Cr. Inventory -- $112,000 Dr. Net investment in the lease - direct financing -- $124,000 Cr. Deferred profit -- $49,000