Pizza ltd. leased equipment from Tasty Company under a four-year lease requiring equal annual payments of sh.86, 038, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no residual value. Pizza ltd.'s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pizza Itd.) is 8%. Assuming that this lease is properly classified as a finance lease, what is the amount of interest expense recorded by Pizza ltd. in the first year of the asset's life? 8%, 4 periods 10%; 4 periods PV Annuity Due 3.57710 3.48685 PV Ordinary Annuity 3.31213 3.16986 Select one: O A. c. sh.17,738 B. a. sh.0 dich 22 700 -222098nage-14#