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On January 2, 2020, Goldman Corporation signed an eight-year capital lease on an office building requiring annual lease payments of $7,500, with the first payment

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On January 2, 2020, Goldman Corporation signed an eight-year capital lease on an office building requiring annual lease payments of $7,500, with the first payment due immediately. Annual lease payments are made each December 31. The present value of the seven future lease payments at 10% interest per year is $36,510. The entry on December 31, 2020, to record the second annual lease payment would include a O A. credit to Cash for $3,849 B. debit to Interest Expense for $3,651 OC. debit to Lease Liability for $3,651 D. credit to Interest Expense for $3,849

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