Zerra Corporation agrees on January 1, 2020, to lease equipment from Rose, Inc. for 3 years. The lease calls for annual lease payments of $20,000 at the beginning of each year (starting on January 1, 2020). The lease does not transfer ownership. The lease does not contain a bargain purchase option. The lease is not a specialized asset. The useful life for the equipment is 10 years. The present value of the lease payments is less than 90% of the fair value of the equipment. Zerra's implicit interest rate is 4%. Zerra's (the lessee) entry to record lease expense on 12/31/2020 is the following: (hint: use the effective interest chart to solve this problem) Present Value of an Annuity Due of 1 Period 4% 5% 6% 8% 10% 2.88609 2.85941 2.83339 2.78326 2.73554 5 4.6299 4.54595 4.46511 4.31213 4.16986 3 Future Value of Ordinary Annuity of 1 Period 4% 5% 6% 8% 10% 3 5 O 3.12000 3.1525 3.1836 3.2464 3.31 5.41632 5.52563 5.637095.8666 6.1051 Lease Expense 20,000 Lease Liability 1,508 Right of Use Asset 18,491 Lease Expense 20,000 Lease Liability 37,722 Right of Use Asset 57,722 Lease Liability 20,000 Lease Expense 37,722 Right of Use Asset 57,722 Lease Expense 20,000 Lease Liability 769 Right of Use Asset 19231 O This question uses the same information as the previous question: Zerra Corporation agrees on January 1, 2020, to lease equipment from Rose, Inc. for 3 years. The lease calls for annual lease payments of $20,000 at the beginning of each year. The lease does not transfer ownership The lease does not contain a bargain purchase option The lease is not a specialized asset. The useful life for the equipment is 10 years. The present value of the lease payments is less than 90% of the fair value of the equipment. Zerra's implicit interest rate is 4%. Zerra's (the lessee) journal entry to record the Right of Use asset should include a debit on 1/01/2020 for the following amount: Present Value of an Annuity Due of 1 7 Period 4% 5% 6% 8% 10% 2.88609 2.85941 2.83339 2.78326 2.73554 5 4.62994,54595 4.46511 4.312134.16986 Future Value of Ordinary Annuity of 1 Period 4% 5% 696 8% 10% 3 3.12000 3.1525 3.1836 3.2464 3.31 5 5.41632 5.52563 5.63709 5.8666 6.1051 57,722 20,000 no entry O 17.780