On October 1, Snyder Technologies plans to sign a capital lease for machinery with a fair market value of $ 152,865 for a six-year period. The company will make the first of seven $ 27,865 annual payments when it signs the lease. The interest rate is 9 percent. What is the amount of the liability generated by this capital lease? How much interest expense will Snyder incur in the first year of the lease?
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