estle signed a 4-year finance January 1,20 life of 5-years. The lease paymen payment due Ja purchase option for Nestle. Using a 10% discount rate, w record as "right of use asset"? requires annual payments of S100,000 with the first nuary 1, 2018. The lease does not transfer title and there is no e lease on January 1, 2017 for equipment having a useful hat amount should Nestle PV Annuity Due 3.48685 PVOrdinary Annuity 3.16987 10%, 4 periods 10%, 5 periods 4.16987 3.79079 A) $316,987 B) $348,685 C) $379,079 D) $416,987 14. On January 1, 2017, Molly signed a 5-year finance lease for an asset having a fair value of $161,000 and a useful life of 7-years. The PV of Molly's lease payments are $154,000. The lease does not transfer ownership, however, Molly can purchase the asset for an amount significantly less than its expected fair value at the end of the lease term. Assuming the straight line method, what should Molly report as amortization expense for 2017? A) $32,200 B) $30,800 C) $23,000 D) $22,000