er 31, 2018, Kuhn Corporation leased a plane 32. On December 31, 2018, Kuhn Corporation om Bell Company for an seven-year period expiring December 31, 2025. Faual annual payments of SH50,000 arc on December 31 of each year, beginning with December 31, 2018. The lease is properly classified as a capital lease on uhn's books. The present value at December 31, 2018 of the eight lease payments over the lease term discounted at 10% is $2,640,792. Assuming the first payment is made on time, the amount that should be reported by Kuhn Corporation as the lease liability on its December 31, 2018 balance sheet is A) $2,640,792. B) $2,454,870. C) $2,376,714. D) $2,190,792. 33. Emporia Corporation is a lessee with a capital lease. The asset is recorded at $900,000 and has an economic life of 8 years. The lease term is 5 years. The asset is expected to have a fair value of $300,000 at the end of 5 years, and a fair value of $100,000 at the end of 8 years. The lease agreement provides for the transfer of title of the asset to the lessee at the end of the lease term. What amount of depreciation expense would the lessee record for the first year of the lease? A) $180,000 B) $160,000 C) $120,000 D) $100,000