USE THE FOLLOWING INFORMATION FOR QUESTIONS #14-17: R&R Company leased equipment from First Title Leasing Corp and the following Information is relevant: First Title Leasing Corporation purchased the equipment for $849.296 Periodic rental payments BEFORE consideration of the BPO $125.000 Annual payments beginning 1/1/X1 Thereafter payments for the next calendar year will be made on this date each year December 31 Lease term B Estimated economic life 10 Discount/Interest Rate 5% Year end December 31 The lease is non-cancelable R&R Co. has the bargain option to purchase the equipment at the end of the lease for $50,000 Estimated fair market value at the end of the lease $150.000 end of year eight The estimated residual value after year ten is zero end of year ten First Title Leasing routinely leases this type of equipment 14. This lease will be considered a finance lease from the lessee's perspective because it meets which criterion? O A. The lease term is for the "major part of the estimated economic life of the asset OB. The present value of the lease payments is equal to or greater than "substantially all of the fair value of the asset O C. There is a purchase option which the Lessee is reasonably certain to exercise OD. Answers A, B, and C O E. This lease will actually be treated as an operating lease for accounting purposes D Question 15 2.5 pts [USE THE INFORMATION FROM QUESTION #14] 15. What is the periodic rental payment amount after considering the BPO? Enter the amount without any symbols as a positive value. Question 16 2.5 pts [USE THE INFORMATION FROM QUESTION #14] 16. What is the Lessor's journal entry for the 12/31/X2 lease payment? O A. Debit Cash for $125,000 and Credit Lease Receivable for $125,000 O B. Debit Cash for $125,000. Credit Interest Revenue for $32,234, and Credit Lease Receivable for $92.766 OC. Debit Cash for $120,013, Credit Interest Revenue for $32, 234, and Credit Lease Receivable for $87.779 OD. Debit Cash for $33,842. Credit Interest Revenue for $32.234, and Credit Lease Receivable for $1.608 Question 17 2.5 pts LUSE THE INFORMATION FROM QUESTION #14) 17. What is the annual Amortization Expense journal entry booked by the Lessee? O A. The Lessee does not book an annual amortization expense journal entry O B. Debit Amortization Expense for $81445 and Credit Right to Use Asset for $81.445 O C. Debit Amortization Expense for $106,037 and Credit Right to Use Asset for $106.037 OD. Debit Amortization Expense for $84.830 and Credit Right to Use Asset for $84,830