4 BACK NEXT CALCULATOR PRINTER VERSION Question 5 Wildhorse, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $294152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no salvage value. Wildhorse, Inc.'s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Wildhorse, Inc.) is 7%. Assuming that this lease is properly classified as a finance lease, what is the amount of interest expense recorded by Wildhorse, Inc. in the first year of the asset's life? PV Annuity Due Py Ordinary Annuity 7%, 4 periods 3.62432 3.38721 10%, 4 periods 3.48685 3.16987 $54036 O $69745 $0 $29415