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What the interest expense for would be

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Problem 1: On January 1, 2014, Pearson Company signed a lease agreement requiring six animal payments of $60,000, beginning December 31, 2014. The lease quali?es as a capital lease- Pearson's incremental borrowing rate was 9% and the lessor's implicit rate, known by Pearson, was 10%. The present value factors of an ordinary annuity for six periods for interest rates of9% and 10% are 4.48592 and 4.35526, respectively.

Question 1: The interest expense for 2014 would be (round answers to the nearest dollar]

A. $21,003

B. $22,246

C. $24,224

D. $26,133

 

Reference no: EM132467862

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