On January 1, Lessee Company leases equipment with a useful life of 5 years for a 3-year lease term. Payments of $52,000 are due at the beginning of each year. The incremental borrowing rate is 3%. The present value of the payments is $151,320. Which of the following is true?

a. Lease expense at the end of the first year is $52,000.

b. Amortization expense at the end of the first year is $151,320 divided by 3.

c. The lease liability at the end of the first year is reduced by $52,000.

d. The ROU asset at the end of the first year is $99,320.