Depreciation is straight line

Do all transactions for 2019

3. On January 1, 2019, Nillis entered into a 4 year lease for a forklift. The forklift has an economic life of 6 years and a fair value of $70,000. The annual lease payment (first payment due 1/1/2019) is $16,000. Nillis can buy the forklift at the end of the 4 years for $8,000 even though the estimated residual value at that time is estimated to be $15,000. The implicit rate on the lease, which happened to be listed in the lease contract, is 8%