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on January 1, 20x1 Trask Co. Signs an agreement to lease office equipment from Colman Inc. for three years with payments of 193,357 begining december

on January 1, 20x1 Trask Co. Signs an agreement to lease office equipment from Colman Inc. for three years with payments of 193,357 begining december 31, 20x1. The equipment fair value is 500,000 with an expected useful life of four ears, At the end of three years, the equipment is expected to have 50,000 residual value. Both Trask and Coleman a 10.5% rate of return in elvaluating this transaction. Trask uses straight-line depreciation. assume that trask gaurantees the residual value. Further assume that the equipment actual residual value on December 31,20x3 is 40000. How much is the interest expense in year 20x3

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