Rauch Incorporated leases a piece of equipment to Donahue Corporation on January 1, 2020. The lease agreement called for annual rental payments of $4,892 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $25,000, a book value of $20,000, and both parties expect a residual value of $8,250 at the end of the lease term, though this amount is not guaranteed. Rauch set the lease payments with the intent of earning a 5% return, and Donahue is aware of this rate. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature.I figured out everything but the depreciation expense

(b) Your answer is partially correct. Try again. Prepare the entries for Rauch for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 1/1/20 Lease Liability Right-of-Use Asset 12/31/20 - TCash e Liability (To record the recognition of the revenue) T 12/31/20 A [Accumulated Depreciation. (To record depreciation expense on the leased equipment) Click if you would like to Show Work for this question: Open Show Work