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? 8%, 5 periods 10%, 5 periods PV Annuity Due PV Ordinary Annuity 4.31213 4.16986 3.99271 3.79079 PV Single Sum 68508 62092 Ob. Cash 260,000 Lease Receivable 897,255 Equipment 1,157,255 Cash 260,000 Lease Receivable 909,109 Equipment 1,169,109 Cash 260,000 Lease Receivable 1,012,368 Equipment 1,272,368 Cash 260,000 Lease Receivable 718,107 d. Equipment 978,107