Compute the interest expense christie will record

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Question - On Jan 1, 2013, Christie Company entered into a finance lease agreement with Jones Corporation. Christie leased a machine for an annual payment of $5,000 for three years, with payments beginning immediately. Christie's incremental borrowing rate is 4 percent per year. Compute the interest expense Christie will record relating to this lease on December 31, 2014.

A) $203

B) $500

C) $192

D) $377

E) $400

Reference no: EM133185501

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