QUESTION 14 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 is $178,855. Pisa, Inc. uses the straight line method to amortize similar assets. Pisa's fiscal year end is December 31st. 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? For the toolbar, press ALT+F10 (PC) or ALTHEN F10 (Mac). BIUS Paragraph Arial 14px EA 2 I !!! O WORDS POWERED BY TINY