1. Pisa Inc. leased equipment from Tower Company under a four-year lease requiring equal annual payments of $50,000 due at the beginning of each year, with the first payment due at lease inception on January 1, 2020. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has an 8-year useful life and the residual value at the end of lease is unguaranteed. The rate implicit in the lease (which is known by Pisa, Inc.) is 8%. The present value of the lease payments if $178,855. Pisa Inc. uses the straight-line method to amortize similar assets. Pisas fiscal year end is December 31^st. This is properly recorded as an operating lease by Pisa. What is the journal entry Pisa will record at the end of the first year of the lease?