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1: Able Company leased some equipment from another company with the following terms: Annual Payments: $25,000 Term: 5 years, first payment due when lease begins

1: Able Company leased some equipment from another company with the following terms: Annual Payments: $25,000 Term: 5 years, first payment due when lease begins January 1, 2022, other payments to be on December 31. Discount Rate: 5% The lease has been determined to be a finance lease. Required Calculate the following amounts: What is the amount of interest expense for the payment on 12-31-22

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