On January 1, 2022. XYZLessebased equipment from alle. Leida.Lessor aning an action. Lone with the obowing me Both the cost and the fair value of the asset for Valley Lessor is $230,000 Lease specifies 3 annual payments of $56,000 beginning January 1, 2022, and on each January 1 thereafter through 2024. The 3-year term and an ember 31, 2024 The asset's expected residual value at the end of the lease term (3 years) is $84.955, unguaranteed by the Lessee The expected useful life of the equipment is 5 years, and there is no expected residual value at the end of its useful life There is no purchase option, and the equipment reverts back to the Lessor at the end of the 3-year period The implicit rate on the lease is 6%, and XYZ Lessee is aware of that rate. Assume Straight Line Depreciation is used on the Right of Use Asset PVAD Factor 3, 1096 2.83330 PV of $1 Factor, n3 0983002 January 1 2022 Signing date of the Lease agreement Valley.Ing. Lesses journal entry would include a PVAD Factor, n-3 0% 2.83330 py of $1 Factor, he3, 10% 83002 At January 1 2022 signing date of the Lease agreement, Valley.Ing. Lessors journal entry would include a O Debit to Lease Receivable for $158,070 O b. Credit to Lease Revenue for $56.000 c. Credit to Sales Revenue $ 188,000 al Credit to Unearned Revenue for $56.000 e Debit to Lease Receivable for $230,000