LESSEE'S PERSPECTIVE No video for this tab. Sunland Warehouse Corporation recorded a right-of-use asset for $240,000 as a result of a finance lease on January 1, 2020. Sunland Warehouse's incremental borrowing rate is 7%, and the implicit rate of the lessor was not known at the commencement of the lease. Sunland Warehouse Corporation made the first lease payment of $54,704 on January 1, 2020. The lease requires 5 annual payments. The equipment has a useful life of 5 years with no residual value. Prepare Sunland Corporation's 2017 journal entries. Implicit Interest Rate Debit Credit 1/1/20 Time Payment Interest Principle Balance Record the first lease payment Debit Credit Yearend Debit Credit 12/31/20 Journal Entry 1/1/2021 Debit Credit 1/1/21