On January 1, 2015, Jennifer Corporation leased equipment from Duplex Company for five years and an annual payment of $35,000 at the beginning of each year. The equipment has a useful life of six years. The first payment was made on January 1, 2015. Jennifer's incremental borrowing rate is 6 percent per year. The entry made to record the initial lease liability will include a:

Group of answer choices

A.)debit to Leased Equipment and credit to Lease Liability for $175,000.

B.)debit to Rent Expense and credit to Rent Payable for $35,000.

C.)debit to Leased Equipment and credit to Lease Liability for $156,279.

D.)debit to Lease Liability and credit to Cash for $175,000.

E.)debit to Prepaid Rent and credit to Lease Liability for $35,000.