Your answer is partially correct. Try again. Sage Corporation enters into a Syear lease of equipment on December 31, 2016, which requires 5 annual payments of $36,000 each, beginning December 31, 2016 In addition, Sage guarantees the lessor a residual value of $19,900 at the end of the lease. However, Sage believes it is probable that the expected residual value at the end of the lease term will be $9,900. The equipment has a useful life of S years. Prepare Sages December 31, 2016, ournal entries assuming the implicit rate of the lease is 10% and this is knownto Sage. (Credit account titles are table aroviades andansuwe rs tono ded, Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor Click here to view the factor table. Date Account Titles and Explanation Debit Credit December 31, 2016 Leased Equipment 114115 Lease Liability 14115 To record the lease lability) December 31, 2016 Lease Liability Cash 36000 (To record lease payment) Click if you would like to Show Work for this question: Open Show Work