options

A. 68805

B. 174350

C. 229350

D. 22935

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On January 1, year 8, Akron Co. leased a new machine from Kent Co. The following Information are related to the lease: Lease term Annual rental payable at beginning of each year Useful life of machine 5 years $55,000 7 years 10 % 4.17 Implicit interest rate in lease known by Akron) Present value of annulty of $1 in advance for 5 perlods at 10% The cost of the machine on Kent's accounting records is $214,500. It is customized for Akron's use with no alternative use to Kent at the end of the lease term. For the first year of the lease term. Akron Co, should record a total expense of