Question: On January 1 , Year One, Lori Inc. signed a five - year finance lease for the use of an asset. Payments are $ 5

On January 1, Year One, Lori Inc. signed a five-year finance lease for the use of an asset.
Payments are $5,000 on each January 1, beginning with Year One. The implicit rate is 6 percent
which is known by Lori Inc. The present value of an annuity due of $1 at 6 percent for
five periods is $4.46511. What is Loris interest expense for Year One?

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