Multiple Choice Question 70 Oriole, Inc. leased equipment from Tower Company under a 4 year lease requiring equal annual payments of $254152, 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. Oriole, in 's incremental borrowing rate is 11% and the rate implicit in the lease which is known by Oriole, Inc. is 9%. Assuming that this lease is properly classified as a capital lease, what is the amount of prindipal reduction recorded when the second lease payment is made in Year 22 PV Ordinary 9%, 4 periods 3.53129 3.23972 11%, 4 periods 3.44371 3.10245 $254152 O $196252 $150505