Sunland Leasing Company leases a new machine to Carla Vista Corporation. The machine has a cost of $65,000 and fair value of $88,500. Under the 3-year, non-cancelable contract, Carla Vista will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2025. Sunland expects to earn an 8% return on its investment, and this implicit rate is known by Carla Vista. The annual rentals are payable on each December 31, beginning December 31, 2025. Click here to view factor tables. Prepare the journal entry at commencement of the lease for Carla Vista, assuming (1) Carla Vista does not know Sunland's implicit rate (Carla Vista's incremental borrowing rate is 9%), and (2) Carla Vista incurs initial directs costs of $7,500. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round final answers to O decimal places e.g. 5,275.) Date Account Titles and Explanation 1/1/25 Right-of-Use Asset Lease Liability No Entry Debit 94,748 Credit 94,748