On January 1, Year 1, Doctor Supply Corp. (DSC) leased a specialized piece of medical equipment directly to Large Medical Clinic (LMC). It cost DSC $85,000 to manufacture the equipment. Pertinent details follow: The fair value of the equipment is $115,000. The lease term is eight years, and the economic life of the equipment is 10 years. LMC has the option to purchase the equipment for $5,000 at the end of the lease. The estimated value at that time is $25,000. LMC will make annual payments of $19,199, with the first payment due on January 1, Year 1. The PV of the lease payments is $115,000 and the rate implicit in the lease is 10%. DSC has a December 31 year end. What journal entry should DSC record on December 31, Year 1? A. DR Lease receivable 9,580 CR Interest income 9,580 B. DR Cash 19,199 CR Lease receivable 19,199 C. DR Lease receivable 11,500 CR Interest income 11,500 D. DR Cash 19,199 CR Lease receivable 9,619 CR Interest income 9,580