Mando Co. leased a piece of nonspecialized equipment for use in its operations from Empire Leasing on January 1, 2019. The 5 year lease requires lease payments of $50, beginning on January 1, 2019, and at each December 31 thereafter through 2022. The lease qualifies as an operating lease for the lessee. Mando's incremental borrowing rate is 11%. Mando incurred initial direct costs of $20. Initial direct costs were paid with cash between lease inception and lease commencement, and there were no prepayments or lease incentives.

Record the journal entries for Mando Co. at lease commencement. Check all that apply.

Cr. Initial direct costs --- $20

Dr. Lease expense -- $54

Cr. Lease liability -- $205

Dr. Right-of-use asset -- $225

Dr. Initial direct costs -- $20

Cr. Lease liability -- $225

Cr. Cash -- $20

Dr. Net investment in the lease -- $205

Dr. Right-of-use asset -- $205