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The Krusty Krab leases equipment on January 1, 2016. The finance lease has a 13-year...

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Accounting

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The Krusty Krab leases equipment on January 1, 2016. The finance lease has a 13-year term, and an implicit rate of 8%. The equipment has a list price of $50,000 and the lease agreement requires a $2,500 down payment when the lease is signed plus 12 annual payments of $6,303.01 on December 31 of each year of the lease the first annual lease payment is due December 31, 2016). After The Krusty Krab makes its payment on December 31, 2018, what is its remaining lease obligation (carrying value) for the equipment? Select one: a. $39,374.20 b. $42,293.71 C. $36,221.12 d. $32,815.80

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