Lessee Company enters into a lease on January 1, 2015that is accounted for as a capital lease. The lease calls for quarterly payments of $15,000, beginning on January 1, 2015, and continuing for 5 years. The last payment is due on October 1, 2019. The lease has an implicit annual interest rate of 8%. The present value of an annuity due:

At 8% per period for 5 periods is 4.312

At 2% per period for 20 periods is 16.678

What amount will Lessee report as a lease obligation on its financial statements dated December 31, 2015?

$203,657

$200,000

$208,968

$198,720

Answer rating: 100% (QA)

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