Blackmun Corp signed a 3 year noncancelable lease for certain machinery on Dec 31, 2018. The terms of the lease called for Blackmun Corp to make equal annual payments of $15600 at the end of each year for 3 years, withtitle to pass to Blackmun Corp at the end of this period. The first payment is made one year after the lease is signed on Dec 31, 2018. The machinery has an estimated useful life of 3 years and no salvage value. Blackmun Corp uses the straight-line method of depreciation for all of its fixed assets. The effective interest rate for the lease was 6.6%. Income Statement For: 2019 Operating Income: 119,232 Earnings from affiliates: 0 Earnings Beore Interest and Taxes: 119,232 Interest expense: 4,950 Earnings before Taxes: 114,282 Provision for Taxes on Income: 31,999 Net income: 82,283 The company had initially accounted for the lease as an operating lease and the figures above were produced using that assumption. Later the company decided to account for the lease as a capital lease. With the lease accounted for as a capital lease, the Times Interest Earned Ratio for 2019 is: | Periods: Present value at 6.6% | | 1: 0.9381 | | 2: 0.88 | | 3: 0.8255 | | 4: 0.7744 | | 5: 0.7265 | | 6: 0.6815 | | 7: 0.6393 | | 8: 0.5997 | | Periods: Present value Annuity at 6.6% | | 1: 0.9381 | | 2: 1.8181 | | 3: 2.6436 | | 4: 3.418 | | 5: 4.1445 | | 6: 4.826 | | 7: 5.4653 | | 8: 6.065 |

A. 119232/7672

B. 119232/2722

C. 119232/4950

D. 132979 / 7672

E. 132979 / 2722

F. 132979 / 4950

G. 121085 / 7672

H. 121085 / 2722

I. 121085 / 4950