4. On January 1, Sepe Vineyard Supply leased a truck for a five-year period, at which time possession of the truck will revert back to the lessor. Annual lease payments are $11,000 due on December 31 of each year, calculated by the lessor using a 4% discount rate. The lessee interest rate is 5% and the truck economic life is 7 years. What amount, if any, should be recorded as the right-of-use asset (leased asset-truck) and lease liability at the inception under this rental agreement? A) 0 B) $3,000 C) present value of $3,000 D) present value of $11,000 On January 2, 2018, Nori Mining Co. (lessee) entered into a 5-year lease for drilling equipment for $240,000. Nori estimates that the equipment's salvage value will be $20,000 at the end of its 8-year life. For the year ended December 31, 2018, what amount should Nori recognize as amortization expense? A) $27,500 B) $30,000 C) $48,000 D) $46,000 On December 30, year 1, Stratege4U LLC leased equipment under a capital lease. Annual lease payments of $20,000 are due December 31 for 10 years. The equipment's useful life is 10 years, and the interest rate implicit in the lease is 10%. The capital lease obligation was recorded on December 30, yea 1, at $135,000, and the first lease payment was made on that date. What amount should be Stratege4U lease balance @ December 31 year 1? A) $65,000 B) $85,500 C) $110,500 D) $115,000 Based on the facts in question 6, what should be the interest expense after the payment was made in year 2? A) $6,500 B) $8,500 C) $11,500 D) $20,000