On January 1, 2010, Remy Corp

Multiple Choice

On January 1, 2010, Remy Corp., a lessee, signed a five-year capital lease for new equipment.The lease requires annual payments of $8, 000.The first payment is due on December 31, 2010.Remy guaranteed a residual value of $2, 000.On December 31, 2014, Remy returned the asset to the lessor, and the asset was appraised at a value of $1, 500.Remy should record which of the following on December 31, 2014?

A) a $1, 500 credit to leased equipment
B) a $ 500 debit to a loss account
C) a $ 500 debit to cash
D) a $1, 500 credit to cash