Smith, the lessee, signs an 8-year lease agreement for a floor of a building on December 31 that requires annual payments of $42,000, beginning immediately. The residual value of $30,000 is guaranteed to the lessor at the end of the lease term. Smith estimates a residual value of $18,000 at the end of the lease term. Smith is aware of the lessors implicit rate of interest of 7%. Record Smiths journal entries on December 31, assuming that the lease is properly classified as a finance lease. Note: Round your answers to the nearest whole dollar. Date Account Name Dr. Cr. Dec. 31 Answer Right-of-Use Asset Answer 284,909 Answer 0 Answer Lease Liability Answer 0 Answer 284,909 To