Question: On January 1 . 2 0 2 5 , Blos 5 om Corporation signed a ten - year noncancelable lease for certain machinery The terms

On January 1.2025, Blos5om Corporation signed a ten-year noncancelable lease for certain machinery The terms of the lease called for Blossom to make annual payments of \(\$ 270000\) at the end of each year for ten years with the title passing to Blossom at the end of this period. The machinery has an estimated useful life of 15 years and no salvage value. Blossom uses the straight-line method of depreciation for all of its fixed assets. Blossom accordingly accounted for this lease transaction as a finance lease. The lease payments were determined to have a present value of \(\$ 1732768\) at an effective interest rate of \(9\%\). With respect to this lease. Blossomshould record for 2025
interest expense of \(\$ 137949\) and amortization expense of \(\$ 115518\).
lease expense of \(\$ 270000\).
interest expense of \$155949 and amortization expense of \$115518.
interest expense of \(\$ 115518\) and amortization expense of \(\$ 97518\).
On January 1 . 2 0 2 5 , Blos 5 om Corporation

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