On January 1, 2016, Rhyme Co leased equipment by signing a six-year lease that required six payments of $30,000 due on January 1 of each year with the first payment due January 1, 2016. The equipment remains the property of the lessor at the end of the lease, and Rhyme does not guarantee any residual value. Using an 8% cost of capital, Rhyme capitalized the lease on January 1, 2016, in the amount

of $149,781. What is the total amount of lease liability (including interest) Rhyme should report as of December 31, 2017?
A) $99,364
B) $107,313
C) $119,781
D) $121,415


B

Business

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