Hi$!$ can someone please help me figure out this question? thanks!On December $31,2020,$ Johnson Company entered into a $10-$year lease agreement with Woods, Inc. to lease equipment. Annual lease payments of $$10,000$ are payable each December $31,$

beginning with the date the lease is signed. There is a $$10,000$ guaranteed residual value but Johnson believes the residual asset will only be worth $$5,000$ at the end of the lease. Johnson

knows that the lessor expects a $10\%$ return on the lease. Johnson has a $12\%$ incremental borrowing rate. The equipment is expected to have an estimated useful life of $10$ years and the

lease is classified as a finance lease. When Johnson Company records the lease, what amount should be recorded as the lease liability?

A$.$ $$67,590$

$.$ $$69,518$

C $$71,445$

D$.$ $$61,446$