IC Leasing leased electronic equipment to Georgia-Atlantic on January 1, 2021. IC Leasing purchased the equipment from International Machines at a cost of $153,255. Here is the related information:

Lease term 2 years (8 quarters)

Quarterly payments $20,000 at the beginning of each period

Economic life 2 years

Fair value of asset $153,255

Annual implicit rate 5%

What do the lessors entries include on April 1, 2021?

	a.	Debit Lease Receivable by $20,000
	b.	Debit Lease Receivable by $18,334 and Interest Revenue by $1,666
	c.	None of the answers are correct
	d.	Credit Lease Receivable by $20,000
	e.	Credit Lease Receivable by $18,334 and Interest Revenue by $1,666