18) The K Company Leased a machine from L Company with the following terms: - Cost of machine $ 500,000; estimated economic life is 5 years; estimated residual value is $50,000; - lease term is 5 years; rent is payable at beginning of each year, - assumed interest rate is 10% -K guarantees residual value of $70,000 K Company would record "Right to Use Asset of: A. $440,000 B. $450,000 C. $470,234 D. $481,372 A) $440,000 B) $450,000 OC) $470.234 D) $481,372 18) The K Company Leased a machine from L Company with the following terms: - Cost of machine $ 500,000; estimated economic life is 5 years; estimated residual value is $50,000; - lease term is 5 years; rent is payable at beginning of each year, - assumed interest rate is 10% -K guarantees residual value of $70,000 K Company would record "Right to Use Asset of: A. $440,000 B. $450,000 C. $470,234 D. $481,372 A) $440,000 B) $450,000 OC) $470.234 D) $481,372