Francisco leased equipment from Julio on December 31, 2024. The lease is a 10-year lease with annual payments of $152,000 due on December 31 of each year beginning December 31, 2024. The present value of the lease payments is $1,027,372. Francisco's incremental borrowing rate is 12% for this type of lease. The implicit rate of 10% is known by the lessee. What should be the balance in Francisco lease liability on December 31, 2025? Multiple Choice $809,909 $810,909 $875.372 5817,419 Help Save & Exit Titanic Corporation leased executive limos under terms of a $13,500 first payment upon signing the lease and four equal annual payments of $21,000 on the anniversary date of the lease. The interest rate implicit in the lease is 12%. The first year's interest expense would be: Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1.PVA of $1. EVAD of $1 and PVAD of $1) 36 Multiple Choice $6,480 $7,654 O O $2.551 $9.000 Help Save & Exit Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $3,000 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years. Lease Payment Cash Effective Decrease Outstanding Payment Interest in Balance Balance $ 42,810 1 $ 8,900 ?? 27 33,910 2 8,900 $1,695 $ 7,205 26,705 3 8,900 1,335 7,565 19,140 4 8,900 957 7,943 11,197 5 8,900 27 22 22 6 $ 3,000 $143 $2,857 $ 0 What is the outstanding balance after payment 5? Multiple Choice $3343 $3,000