On December 30, Year 1, Fagen Corp. leased equipment under a finance lease. Annual lease payments of $30,000 are due December 31 for 10 years. The equipment's useful life is six years, and the interest rate implicit in the lease is 10%. The finance lease obligation was recorded on December 30 Year 1, at $150,000, and the first lease payment was made on that date. What amount should Rafferty include in current liabilities for this finance lease in its December 31, Year 1 balance sheet?

• A.

  $30,000

• B.

  $18,000

• C.

  $19,800

• D.

  $15,000