Question $3$

$3$ pts

On January $1$st$,2022$ Kyuss Industries leased equipment from Soundgarden Importers under a six$-$year lease requiring equal annual payments of $$300,000$ with the first payment due at lease inception $($January $1$st$,2022).$ The lease does not transfer ownership, nor is there a bargain purchase or bargain renewal option. The equipment has an seven$-$year useful life and no salvage value. Kyuss's incremental borrowing rate is $10\%$ and the rate implicit in the lease, of which Kyuss is aware, is $8\%.$ What is the amount of interest expense recorded by Kyuss for the year ended December $31$st$,2022($round final answer to the nearest $$1,000)?$

$\backslash$table$[[$PV Annuity Due,,PV Ordinary Annuity$],[8\%,6$ periods,$4\mathrm{.}9927,,8\%,5$ periods,$3\mathrm{.}9927],[10\%,6$ periods,$4\mathrm{.}7908,,10\%5$ periods,$3\mathrm{.}7908]]$

$$96,000$

$$60,000$

None of the other answers

$$114,000$

$$120,000$