Present and future value tables of $1 at 11% are presented below.

PV of $1 FV of $1 PVA of $1 FVA of $1 1 0.90090 1.11000 0.90090 1.0000 2 0.81162 1.23210 1.71252 2.1100 3 0.73119 1.36763 2.44371 3.3421 4 0.65873 1.51807 3.10245 4.7097 5 0.59345 1.68506 3.69590 6.2278 6 0.53464 1.87041 4.23054 7.9129

Titanic Corporation leased executive limousines under terms of $130,000 to be paid at the inception of the lease, and two equal annual payments of $140,000 to each be paid thereafter on the anniversary date of the lease. The interest rate implicit in the lease is 11%. The first year's interest expense would be:( Round your intermediate calculations and final answers to the nearest dollar amount.)

Multiple Choice

$30,800.

$26,373.

$138,900.

$15,400.