On January 2, 2021, Pharoah Leasing Company leases equipment to Brick Co. with 5 equal annual payments of $164000 each, payable beginning January 2, 2021. Brick Co. agrees to guarantee the $162500 residual value of the asset at the end of the lease term. The expected value of the residual value is $58500. Brick's incremental borrowing rate is 11%, however it knows that Pharoah's implicit interest rate is 9%. What journal entry would Brick Co. make at January 2, 2021 to record the lease? PV Annuity. Due PV Ordinary Annuity PV Single Sum 4.23972 3.88965 0.64993 9%,5 periods 11%,5 periods 4.10245 3.69590 0.59345 598907 Right-of-Use Asset Lease Liability 598907 705495 Right-of-Use Asset Cash Lease Liability 164000 541495 695314 Right-of-Use Asset Cash Lease Liability 164000 531314 762907 Right-of-Use Asset Cash Lease Liability 164000 598907 On January 2, 2021, Cullumber Leasing Company leases equipment to Brick Co.with 5 equal annual payments of $149000 each, payable beginning January 2, 2021. Brick Co. agrees to guarantee the $140500 residual value of the asset at the end of the lease term. The expected value of the residual value is $51500. Brick's incremental borrowing rate is 10%, however it knows that Cullumber's implicit interest rate is 8%. What journal entry would Brick Co. make at January 1, 2022 to record the second lease payment? PV Annuity Due PV Ordinary Annuity PV Single Sum 4.31213 3.99271 0.68058 8%, 5 periods 10%, 5 periods 4.16987 3.79079 0.62092 Lease Liability Interest Expense Cash 93592 55408 149000 Lease Liability Interest Expense Cash 105098 43902 149000 149000 Lease Liability Cash 149000 Lease Liability Interest Expense Cash 104674 44326 149000