40. Exhibit 201 On January 1, 2014, Pearson Company signed a lease agreement requiring six animal payments of $60,000, beginning December 31, 2014. The lease qualies as a capital lease- Pearson's incremental borrowing rate was 9% and the lessor's implicit rate, known by Pearson, was 10%. The present value factors of an ordinary annuity,r of$l for six periods for interest rates of9% and 10% are 4.48592 and 4.35526, respectively. Refer to Exhibit 20]. The interest expense for 2014 would be (round answers to the nearest dollar] A. $21,003 B. $22,246 C. $24,224 D. $26,133