Karla Salons leased equipment from Smith Company on July 1, 2024, in a finance lease. The present value of the lease payments discounted at 11 % was $78,400. Ten annual lease payments of $12,000 are due each year beginning July 1, 2024. Smith Company had constructed the equipment recently for $70,000, and its retail fair value was $78,400. What amount did Smith Company record in its income statement for the reporting year ending December 31, 2024, in connection with the lease? (ignore taxes.) Multiple Choice O $15,704 $12,052 $3,652 G

Karla Salons leased equipment from Smith Compary on July 1, 2024, in a finance lease. The present value of the lease payments discounted at 11% was $78,400. Ten annual lease payments of $12,000 are due each year beginning July 1,2024 , Smith Company had constructed the equipment recently for $70,000, and its retail fair value was $78,400. What amount did Smith Company record in its income statement for the reporting year ending December 31, 2024, in connection with the lease? (ignore taxes) Multiple Choice $15,704 $12,052 $3.652