On January 2, 2021, Oriole, Inc. signed a 10-year noncancelable lease for a heavy duty...
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On January 2, 2021, Oriole, Inc. signed a 10-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $210000 starting at the beginning of the first year, with title passing to Oriole at the expiration of the lease. Oriole treated this transaction as a finance lease. The drill press has an estimated useful life of 15 years, with no salvage value. Oriole uses straight-line depreciation for all of its plant assets. Agregate lease payments were determined to have a present value of $1236739, based on implicit interest of 11% In its 2021 income statement, what amount of interest expense should Orlole report from this lease transaction? $123674 $112941 $103449
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