On January 2, 2025, Wildhorse, Inc. signed a ten-year noncancelable lease for a heavy duty...
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On January 2, 2025, Wildhorse, Inc. signed a ten-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $323000 starting at the beginning of the first year, with the title passing to Wildhorse at the expiration of the lease. Wildhorse treated this transaction as a finance lease. The drill press has an estimated useful life of 15 years, with no salvage value. Wildhorse uses straight-line amortization for all of its plant assets. Aggregate lease payments were determined to have a present value of $2183165, based on an implicit interest of 10%. In its 2025 income statement, what amount of amortization expense should Wildhorse report from this lease transaction? A $193800 B $134583 C $145544 D $323000
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