USE THE FOLLOWING FACTS FOR THIS QUIZLET: Annual payments = $51,000 Purchased for / Fair Market Value of property at inception = $349,500 Payments begin 1/1/X3 Lease term = 6 years Estimated economic life = 6 years Annual interest rate = 2% Year end is December 31 The lease is non-cancelable. There are no options to purchase or renew. The leased asset reverts back to the leasing company at the end of the lease. The leasing company routinely lease this type of property. QUESTION #1: Consider the journal entry for the LESSEE at inception of the lease. The debit should be for what AMOUNT? Consider the journal entry required by the LESSEE at the inception of the lease. The debit should be to what TYPE of account? Contra-asset Fixed asset Liquid asset Intangible asset