Question 21 Not yet answered Points out of 3.34 On January 1, 2021, Blossom Corporation signed a 5-year noncancelable lease for equipment. The terms of the lease called for Blossom to make annual payments of $198.000 at the beginning of each year for 5 years beginning on January 1, 2021 with the title passing to Blossom at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Blossom uses the straight-line method of depreciation for all of its fixed assets. Blossom accordingly accounts for this lease transaction as a finance lease. The lease payments were determined to have a present value of $825,633 at an effective interest rate of 10%. P Flag Question In 2021, Blossom should record interest expense of Select one: o a. $115,437. o b.$62,763. o c. $82,563 O d. 5135,237. Question 24 Not yet Cougar Corporation sells bikes. The corporation also offers its customers a 4-year warranty contract. During 2017, Cougar sold 30,000 warranty contracts at $10 each. It recognizes this revenue using the straight-line method equally over 2017 through 2020. The corporation spent $50,000 servicing warranties during 2017 and it estimates that an additional $220,000 will be spent in the future to service the warranties. Assume the service costs are inventory costs. Prepare Leppard's journal entries for the cost of servicing the warranties and recognition of warranty revenue. Which amounts below reflect the correct amounts from these entries? Points out of Select one a. Debit warranty expense S270,000 Credit warranty liability $220,000 b. Debit warranty expense $50,000, Credit warranty liability $220,000 c. Debit warranty expense $270,000 Debit unearned warranty revenue $75,000 O d. Debit warranty expense $50.000. Debit unearned warranty revenue $75,000