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A finance lease requires 8 annual payments of $25,000 with the first payment at the...

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Accounting

A finance lease requires 8 annual payments of $25,000 with the first payment at the beginning of the lease. The interest rate is 8%. The lessor has acquired the leased equipment for $135,000. The initial entry on the books of the LESSOR would include:
a. credit right-of use asset $135,000
b. credit sales revenue $143,666
c. debit cost of good sold $110,000
d. debit lease receivable $155,159

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