On October 31, 20x5, Walsh Corp. (WC) signed a contract to rent an excavator for a 12-month period, details of which are set out below: Contract term: 12 months Implicit rate in lease: unknown by WC WC's incremental borrowing rate: 0.4% per month Payments: $4,000 per month first due at the commencement date Useful life: Residual value end of lease term: $150,000 (not guaranteed) Residual value end of useful life: $8,000 Transfer of title: No 10 years WC's policy is to adopt the recognition exemption to expense short-term leases whenever possible. The journal entry at the inception of the lease would include which of the following? O a. Debit to right-of-use asset for O b. Debit to right-of-use asset for Oc. Debit to right-of use asset for Od. Debit to rental expense for $42,962 $46,962 $4,000 $4,000