Question 16 10 points On January 1, 2018, AFS leased equipment from Pearson Corporation over a five year lease. The lease agreement that qualifies as an operating lease. The lease agreement specifies five annual payments of $13,915 beginning January 1, 2018, the beginning of the lease and at each December 31 thereafter through 2021. The present value of the lease payments is $60,000. The asset's useful life is 10 years. The interest rate is 8%. a. Preparo ALL. 2018 entries required by AFS to be made on this toase. The journal entry is to be made in proper form, label your Dr./Cr. b. After recording the 2018 entries, what amount will AFS report as its lease liability Show the support for your answer c. How will this fease impact AFS's earnings? Will earnings increase or decrease and by what amount? Again, show support for your