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Walker, Inc., leased a machine from Holden Company. The lease term was for a five-year...

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Accounting

Walker, Inc., leased a machine from Holden Company. The lease term was for a five-year period be-ginning January 1, 2008. Equal annual lease payments of $3,000 are due on December 31 of each year.The implicit rate of the lease is 10% and is known to Walker. Walker has properly applied the leasecapitalization criteria and as a result, accounts for the lease as a capital lease. The first payment underthe lease was made on December 31, 2008 as scheduled.How much should Walker classify as the current portion of the lease liability at December 31, 2008?a.$2,252b.$2,727c.$3,000

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