24)Smith Inc. sells computer systems. Smith leases computers to Jones Company on January 1, 2018. The manufacturing cost of the computers was $12 million. This noncancelable lease had the following terms: Lease payments: $2,466,754 semiannually; first payment at January 1, 2018; remaining payments at June 30 and December 31 each year through June 30, 2022. Lease term: five years (10 semiannual payments). No residual value; no purchase option. Economic life of equipment: five years. Implicit interest rate and lessee's incremental borrowing rate: 5% semiannually. Fair value of the computers at January 1, 2018: $20 million. What is the outstanding balance of the lease liability in Jones's June 30, 2018, balance sheet? Round your answer to the nearest dollar.

a)$21,000,000.

b)$17,533,246.

c)$15,943,154.

d)$15,066,492.

Show your work

25)Refer to the previous data for Smith Inc. What is the interest revenue that Smith would report on this lease in its 2018 income statement?

a)		$1,673,820.
b)		$876,662.
c)		$438,331.
d)		$0.