On 12/31/2019, Gables Manufacturing (lessor) leased equipment to Lorena Co (lessee) for a 5-year period under a non-cancelable agreement, after which the leased asset will revert back to Gables. The equipment costs Gables $360,000 to manufacture it and it normally sells for $451,195. Equal payments under the lease are $100,000 and are due on December 31 of each year, with the first payment on December 31, 2019. The equipment has a useful life of 6 years. The equipment has a residual value of 35,000 at the end of the lease term. . The rate implicit in the lease used by the lessor is 9%, Lorena Co's incremental borrowing rate is 12% and lessee is aware of lessor's rate. F. assume the equipment's residual value is guaranteed by Lorena Co. Assume the asset was appraised at $18,000 at the end of the lease term. Which of the following journal entry would Lorena record for the return of the equipment at the end of the lease term? debit lease payable $35,000 b. debit loss $18,000 c. credit cash $17,000 d. The lessee is not required to record any other journal entry at the end of the lease term a. assume the equipment's residual value is not guaranteed by Lorena Co. Assume the asset was appraised at $18,000 at the end of the lease term. Which of the following journal entry would Gables records for the return of the equipment at the end of the lease term? a. debit equipment inventory $35,000. b. debit loss $17,000. c. debit cash $17,000. d. debit equipment inventory $17,000