Ely Roofing Contractors enters into a lease for the use of new equipment. The term of the lease is three years. The annual lease amount is $6,000. The present value of the lease payments is $50,000. Ely Roofing estimates the economic life of the equipment to be five years. The lease is considered a finance lease. The journal entry to record the initial transaction will include a debit of $50,000 to Right-of-Use Asset and a credit of $50,000 to Lease Liability. debit of $6,000 to Rental Expense and a credit of $6,000 to Lease Liability. debit of $10,000 to Lease Liability and a credit of $10,000 to Right-of-Use Asset. O debit of $50,000 to Right-of-Use Asset and a credit of $50,000 to Lease Revenue