Pioneer has agreed to make annual lease payments in arrears of $32,549.08. The lease is for 10 years which is also the useful life of the equipment. There is no bargain purchase option or guaranteed residual value for the equipment. The discount rate for the lease is 10%. Assuming the initial right to use asset and right to use liability of $200,000, what is the total amount of expense that Pioneer would book for the lease in the first year? Note: Pioneer uses the straight line method to amortize Right to Use Assets for Finance Leases

(assume there are no executory costs)

Group of answer choices

$40,000

$20,000

$30,000

$32,549.08