Question: Heavy Mechanical Complex (HMC) acquired a giant lathe machine under a capital lease agreement. HMC pays the lessor $2400 at the beginning of every 3

Heavy Mechanical Complex (HMC) acquired a giant lathe machine under a capital lease agreement. HMC pays the lessor $2400 at the beginning of every 3 months for 5 years. If HMC can obtain 5-year financing at 10% compounding quarterly, what long-term lease liability will HMC initially record? Select one: O A. $61 307 O B. $62 840 O C. $48 000 O D. $38 349 O E. $37 414

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