On January 2, 2018, Jackie Leasing Company leases equipment to SH Co. with 5 equal annual payments of $260,000 each, payable beginning January 2, 2018. SH Co. agrees to guarantee the $70,000 residual value of the asset at the end of the lease term. SH's incremental borrowing rate is 10%, however it knows that Jackie's implicit interest rate is 8%. What journal entry would Jackie make at January 2, 2018 assuming this is a direct-financing lease? PV Annuity Due PV Ordinary Annuity PV Single Sum 8%, 5 periods 10%, 5 periods 4.31213 4.16986 3.99271 .68508 3.79079 .62092 Cash 260,000 Lease Receivable 909,109 a. Equipment 1,169,109 Cash 260,000 Lease Receivable 1,012,368 Ob. Equipment 1,272,368 Cash 260,000 Lease Receivable 718,107 Equipment 978,107 Cash 260,000