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50 . On January 1 , 2014 , Donna Company leased equipment by signing a five - year lease that required five payments of $30
50 . On January 1 , 2014 , Donna Company leased equipment by signing a five - year lease that required five payments of $30 , 000 due on December 31 of each year . The equipment remains the property of the lessor at the end of the lease , and Donna does not guarantee any residual value . Using a rate of 8% , Donna capitalized the lease on January 1 , 2014 , in the amount of $1 19 , 781 . What is the amount of interest expense Donna should report on its 2015 income statement ? A. $ 9, 582 B. $ 7, 949 C. $ 20, 418 D . $2 2 , 05 1
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