LSCREEN PRINTER VERSION 4BACK LeBron James (LBJ) Corporation agrees on January at the beginning of each year. The lease does not transfer ownership, nor does it contain a bargain purchase option, and is not a specialized asset. In addition, useful life of the equi 1, 2017, to lease equipment from Cavaliers, Inc. for 3 years. The lease calls for annual lease payments of ipment is 10 years, and the present value of the lease payments is less than 90% of the fair value of the equipment. Prepare LBJ's journal entries on January 1, 2017 (commencement of the operating lease), and on December 31, 2017 unknown, and LBJ's incremental borrowing rate is 8%. (Credit account titles manually. For calculation 5,275.) are automatically indented when the amount is entered. Do not indent purposes, use 5 decimal places as displayed in the factor table provided and round final answers to o decimal places, e.g. Click here to view the factor table. Date Account Titles and Explanation Debit Credit /1/17 Right-of-Use Asset 72363 Lease Liability To record lease liablity) Liability 72363 ase 26000 Cash 26000 (To record lease payment) 12/31/17Lease Expense 26000 Liability Right-of-Use Asset All Rights Reserved. A Division of