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Aflac Corporation leased machinery under a finance lease arrangement with its lessee. At January 1, 2021, the first day of the lease, the asset and
Aflac Corporation leased machinery under a finance lease arrangement with its lessee. At January 1, 2021, the first day of the lease, the asset and lease obligation were recorded for $68,000. The first lease payment of $13,276 was due December 31, 2021 and the interest rate they used in their calculations was 7%. The lease term was 10 years. Which of the following best describes what would be reported on Aflac's statement of income for the year ending December 31, 2021?
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