Q10.19: Briarwood Company enters into a lease for the use of a new piece of equipment. The term of the lease is 3 years, and Briarwood estimates the economic life of the equipment to be 4 years. The present value of the lease payments is $58,000. The lease is considered a finance lease. The journal entry to record the initial transaction will include a A debit of $58,000 to Right-of-Use Asset and a credit of $58,000 to Lease Liability. B debit of $14,500 to Equipment Lease Expense and a credit of $14,500 to Lease Liability debit of $14,500 to Lease Liability and a credit of $14,500 to Right-of-Use Asset. debit of $58,000 to Right-of-Use Asset and a credit of $58,000 to Lease Revenue