Please answer all 3. Thank you!!

12. On January 1, 2019, Lynn Manufacturing leased a floor of a building for use in its North American operations from Easymouey Bank. The 9-year, noncancellable lease requires annual lease payments of $12,000, beginning January 1, 2019, and at each January 1 thereafter through 2027 The lease agreement does not transfer ownership, nor does it contain a purchase option. The floor of the building has a fair value of $85,000 and an estimated remaining life of 10 years Eassouoosy Bank's implicit rate of 1 1% is known to Lynn. At the end of 2019, which of the following jounal entries will be used by Lynn to record Interest Expense? debit to Lease Liability and credit to Interest Expense No entry payment is made on January 1, 2020. debit to Interest Expense and Lease Liability and credit to Cash debit to Interest Expense and credit to Interest Payable C 13. On January 1, 2019, Murray Manufacturing leased a building for use in its operations from Associated Realty. The 7-year, poncancellable lease requires annual lease payments of $23,000, beginning January 1, 2019, and at each December 31 thereafter through 2024. The lease payment includes costs related to property taxes of $3000. They also include payments for common area maintenance. The observable standalone price for the lease (including the property taxes) is $21,000 and the observable standalone price for the common area maintenance is $4000. In addition, Murray agrees to pay insurance on the building. Murray pays the insurance each year when it receives an invoice from Associated Realty for the insurance amount. On December 15, 2019, Murray was billed and paid $2500 for this insurance. Murray does not make the election to account for each separate lease component, along with its associated ponlcass components, as a single lease component. The lease agreement does not transfer ownership, nor does it contain a purchase option. The building has a fair value of $86,000 and an estimated remaining life of 8 years. Associated Realty's implicit rate of 10% is known to Murray. Round percentages to one decimal place. Assuming this is classified by Muray as a finance lease, at what amount should the right-of-use asset and lease liability be recorded? $103,464 $19,320 C $101,750 C $123,171