Multiple Choice Question 84 On January 2, 2018, Cullumber Leasing Company leases equipment to Brick Co. with 5 equal annual payments of $161000 each, payable beginning January 2, 2018. Brick Co. agrees to guarantee the $101000 residual value of the asset at the end of the lease term. Brick's incremental borrowing rate is 11%, however it knows that Cullumber's implicit interest rate is 9%. What journal entry would Cullumber make at January 2, 2018 assuming this is a direct-financing lease? PV Annuity Due PV Ordinary Annuity PV Single Sum 4.23972 3.88965 0.64993 9%, 5 periods 4.10245 3.69590 11%, 5 periods 0.59345 161000 Cash Lease Receivable Equipment 559433 720433 Cash 161000 Lease Receivable 521595 Loss 223405 Equipment 906000 Cash 161000 Lease Receivable 587238 Equipment 748238 Cash 161000 Lease Receivable 745000 Equipment 906000