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?

A $ 308,570

B $ 370,000

C $ 298,764

D $ 444,000

E $ 354,518

E $ 354,518

Q15: 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 o C $298,764 o D $444,000 O E $ 354,518