On December 31 . 2014, Endive Company leased a machine under a capital lease for a period of ten years, contracting to pay $100,000 on signing the lease and $100,000 annually on December 31 of the next nine years. The present value at December 31 . 2014, of the ten lease payments over the lease term discounted at 1 . percent was $676,000 . At December 31 . 2015, Endive's total capital lease
liability is
a. $486,000.
b. $518,000.
c. $533,600.
d. $607,960.
C
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Answer the following statement true (T) or false (F)
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