Patrol, Inc, leased a machine from Ravel Company. The lease term was for a five-year period beginning January 1 . 2014 . Equal annual lease payments of $3,000 are due on December 31 of each year. The implicit rate of the lease is 10% and is known to Patrol. Patrol has properly applied the lease capitalization criteria and as a result, accounts for the lease as a capital lease. The first payment
under the lease was made on December 31 . 2014 as scheduled. How much should Patrol classify as the current portion of the lease liability at December 31 . 2014?
a. $2,049
b. $7,460
c. $3,000
d. $9,509
A
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