I had the following question, where I don't know how they got to the answer (maybe the question is wrong). It is very similar to this one (https://www.chegg.com/homework-help/questions-and-answers/question-15-1-pts-pisa-inc-leased-equipment-tower-company-four-year-lease-requiring-equal--q45729205), but this question contains a residual asset:

On 1 January 2020, Finance Leasing Company leases equipment to construction company CCB with 5 equal annual payments of 80,000 each, payable beginning 1 January 2020. CCB agrees to guarantee the 50,000 residual value of the asset at the end of the lease term. CCB's incremental borrowing rate is 10%. However, Finance Leasing Company's implicit interest rate and rate on investment is 8%. What journal entry would Finance Leasing Company make at 1 January 2020 assuming this is a finance lease?

PV Annuity Due PV Ordinary Annuity PV Single Sum 4,31213 3,99271 0,68058 8%, 5 periods 10%, 5 periods 4,16986 3,79079 0,62092 ANSWER Cash Lease Receivable To Equipment 80.000 299.224 379.224 Cash Lease Receivable Loss To Equipment 80.000 264.970 105.03 450.000 Cash Lease Receivable To Equipment 80.000 284.635 364.635 Cash Lease Receivable To Equipment 80.000 370.000 450.000