Jaiko Has Leased Equipment for 5 Years at an Annual $\quad \$ 1730$

Jaiko has leased equipment for 5 years at an annual rent of $4000 payable at the end of each year.Jaiko could purchase the equipment for $14 420.The implicit interest rate is 12%.At the end of the first year Jaiko should make the following entry:

A) A) Dr Lease Liability $\quad \$ 1730$
Dr Interest Expense $\quad \$ 2270$
CrCash at Bank $\quad\$ 4000$
B) B) Dr Interest Expense $\quad \$ 4000$
Cr Cash at Bank $\quad\$ 4000$
C) C) Dr Lease Liability $\quad \$ 2270$
Dr Interest Expense $\quad \$ 1730$
Dr Cash at Bank $\quad \$ 4000$
D) D) Dr Rent Expense $\quad \$4000$
Cr Cash at Bank $\quad \$4000$