At the beginning of current year , EDSA company leased a building with the following information: 1) Annual fixed payment in advance at the beginning of each lease year -1,000,000 2) initial direct cost paid 350,000 3) Lease incentive received -150,000 4) Lease bonus paid to lessor before commencement of lease- 100,000 5) Present value of cost of restoring the building as required by contract discounted at 6% -200,000 6) Purchase option that is not reasonably certain to be exercised - 300,000.00 7) Lease term 5 years 8) Implicit interest rate 8% 9) PV of an annuity of 1 in advance at 8% for 5 periods 4.31 10) PV of 1 at 8% for 5 periods .68. What total amount should be reported as interest expense for the current year?

205,984

276,800

344,800

264,800

At the beginning of current year , EDSA company leased a building with the following information: 1) Annual fixed payment in advance at the beginning of each lease year -1,000,000 2) initial direct cost paid 350,000 3) Lease incentive received -150,000 4) Lease bonus paid to lessor before commencement of lease- 100,000 5) Present value of cost of restoring the building as required by contract discounted at 6% -200,000 6) Purchase option that is not reasonably certain to be exercised - 300,000.00 7) Lease term 5 years 8) Implicit interest rate 8% 9) PV of an annuity of 1 in advance at 8% for 5 periods 4.31 10) PV of 1 at 8% for 5 periods .68. What is the annual depreciation of cost of right of use asset?

588,750

912,800

601,250

962,000

At the beginning of current year EDSA Company leased an equipment from a lessor with the following pertinent information: a) Annual rental payable at the end of each year 500,000 b) Lease term 8 years c) Useful life of equipment 10 years d) Implicit interest rate 10% e) PV of an ordinary annuity of 1 for 8 periods at 10% 5.33 f) Present value of 1 for 8 periods at 10% .47. The entity has the option to purchase the equipment on the expiration of the lease term by paying 500,000.00. There is reasonable certainty that the entity shall exercise the option. The entity incurred initial direct cost of 200,000. What is the interest expense for the current year?

310,000.00

266,500.00

316,500.00

290,000.00