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On January 2,2025, Gold Star Leasing Company leases equipment to Brick Co. with 5 equal...

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Accounting

On January 2,2025, Gold Star Leasing Company leases equipment to Brick Co. with 5 equal annual payments of $160,000 each, payable beginning January 2,2025.
Brick Co. agrees to guarantee the $150,000 residual value of the asset at the end of the lease term. The expected value of the residual value is $50,000. Brick's incremental borrowing rate is 10%, however it knows that Gold Star's implicit interest rate is 8%. What journal entry would Brick Co. make at January 1,2026 to record the second lease payment?
\table[[,PV Annuity Due,PV Ordinary Annuity,PV Single],[%,5 periods,4.31213,3.99271,.68508],[\table[[10%,5
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