Multiple Choice Question 70 Cullumber, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $234152, 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. Cullumber, Inc.'s incremental borrowing rate is 10% and the rate implicit in the lease which is known by Cullum ber, Inc. is 8%. Assuming that this lease is properly classified as a capital lease, what is the amount of principal reduction recorded when the second lease payment is made in Year 2? Annuity 3.57710 3.31213 8%, 4 periods 3.48685 3.16987 10%, 4 periods O $23415:2 O$172109 O$185877 O $148413