Q 16: Leases Homework. Unanswered The Corp has signed a 5-year lease for new production equipment. The lease calls for annual payments at the start of each year, beginning on the date of the signing as the first payment, of $74,000. The useful life of the machine is 6 years and The Corp will retain title at the end of the lease. The lessor structures leases with an implicit interest rate of 10%. There is no residual value at the end of the lease. How much interest expense will The Corp recognize over the life of the lease? $ 37,000 o B $ 185,000 o C $61,430 O D $ 153,500 O E $ 44,400 Unanswered Submit Q 15: Lease Homework Unanswered The Corp has signed a 5-year lease for new production equipment. The lease calls for annual payments at the start of each year, beginning on the date of the signing as the first payment, of $74,000. The useful life of the machine is 6 years and The Corp will retain title at the end of the lease. The lessor structures leases with an implicit interest rate of 10%. There is no residual value at the end of the lease. How much should The Corp initially record as right of use asset? 0 A $308,570 O B $370,000 $ 370,000 $ 298,764 $ 444,000 O E $ 354,518 Q11: Bonds and long-term notes Homework. Unanswered 11. AAM Office Equip has issued $100,000,000 of bonds. They mature in 15 years and have a 7% coupon rate. When issued, the market rate for similar bonds was 8.75%. Assume this caused the bonds to be sold for $91,000,000. AAM amortizes and premiums and discounts on a straight line method. The bond pays interest annually with principle due at maturity. Annual interest payments will be, assuming all payments on time the bond outstanding until maturity, will be 0 A $7,000,000 o B $7,600,000 O c $6,400,000 O D $9,000,000 O E $8,750,000