Multiple Choice
On December 31, 2011, Cooke Company leased a machine under a capital lease for a period of ten years, contracting to pay $100,000 on signing the lease and $100,000 annually on December 31 of the next nine years. The present value at December 31, 2011, of the ten lease payments over the lease term discounted at 10 percent was $676,000. At December 31, 2012, Cooke's total capital lease liability is
A) $486,000.
B) $518,000.
C) $533,600.
D) $607,960.
Correct Answer:
Verified
Correct Answer:
Verified
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