Corona Company signed 9 years lease agreement for a machinery on January 1, 2014 and the annual payment was paid RO 33,550 at the beginning. The other terms are no residual value, fair value estimated at RO 196,400, interest rate is 12% and straight line method is applied. The PV (Present Value) is calculated as RO 200,214. Analyze the above scenario of lease, calculate the closing balance to be shown as per the Amortization table for the Year 5?

a.

RO 101,904

b.

RO 120,941

c.

RO 80,582

d.

RO 29,955

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