Fact Pattern: Neary Company has entered into a contract to lease computers from Baldwin Company starting on January 1, Year 1. Relevant information pertaining to the lease is provided below. Lease term Useful life of computers Present value of future lease payments Fair value of leased asset on date of lease Baldwin's implicit rate (known to Neary) At January 1, Year 1, the lease would be reported on Neary's books as a(n) O Asset only. O Expense and a liability. Asset and a liability. Liability only. 4 Years 5 Years $100,000 105,000 10%