I need help with the journal entry to initially record the lease. It should be based upon the NET METHOD and based on ASC 840. The lease for the bulldozer is for 10 years, the economic life is 15 years. Annual lease payments are $16,000 due at the end of each year. The residential value of the bulldozer is $24,000 at the end of the lease term with no residual value guarantee. The lease doesnt transfer ownership or provide an option to purchase. The bulldozer cost $100,000 should the customer want to purchase it outright. The implicit rate is 6.93% assuming the fair value of the bulldozer is $125,000 at the beginning of the term and 5.45% assuming a fair value of $135,000.