Problems: I. (20%) Eastern Edison Company leased equipment from Low-Tech Leasing on January 1, 2016. Low-Tech purchased the equipment at a cost of $222,664. Other information: Lease term Annual payments Life of asset Fair value of asset Implicit interest rate Incremental rate 3 years $80,000 on January 1 each year 3 years 222,664 8% 8% There is no expected residual value. Required: Prepare appropriate journal entries for Low-Tech Leasing for 2016. Assume a December 31 year-end