$20.$ On September $1,2024,$ Custom Shirts Incorporated entered into a lease agreement appropriately classified as an operating lease. The lease term is three years. The annual payments by Custom Shirts are $($a$)$ $$23,000$ for year $1,($b$)$ $$27,000$ for year $2,$ and $($c$)$ $$31,000$ for year $3.$ How much total lease expense will Custom Shirts recognize for $2024?$

Multiple Choice

$$27,000$

$$23,000$

$$7,667$

$$9,000$

$21.$ On January $1,2019,$ F Corporation issued $3,800$ of its $10\%,$ $$1,000$ bonds for $$3,916,000.$ These bonds were to mature on January $1,2029,$ but were callable at $101$ any time after December $31,2022.$ Interest was payable semiannually on July $1$ and January $1.$ On July $1,2024,$ F called all of the bonds and retired them. The bond premium was amortized on a straight$-$line basis. Before income taxes, F Corporation's gain or loss in $2024$ on this early extinguishment of debt was:

Multiple Choice

$$38,000$ loss.

$$14,200$ gain.

$$96,000$ gain.

$$25,800$ gain.

$22.$ Francisco leased equipment from Julio on December $31,2024.$ The lease is a $10-$year lease with annual payments of $$151,000$ due on December $31$ of each year beginning December $31,2024.$ The present value of the lease payments is $$1,020,613.$ Francisco's incremental borrowing rate is $12\%$ for this type of lease. The implicit rate of $10\%$ is known by the lessee. What should be the balance in Francisco lease liability on December $31,2025?$

Multiple Choice

$$805,574$

$$804,074$

$$869,613$

$$812,084$

$23.$ Auerbach Incorporated issued $10\%$ bonds on October $1,2024.$ The bonds have a maturity date of September $30,2034$ and a face value of $$200$ million. The bonds pay interest each March $31$ and September $30,$ beginning March $31,2025.$ The effective interest rate established by the market was $12\%.$

Assuming that Auerbach issued the bonds for $$177,059,200,$ what interest expense would it recognize in its $2024$ income statement?

Multiple Choice

$$5,311,776$

$$10,623,552$

$$0$

$$6,000,000$