On January 1, 2010, Rayma Co

Multiple Choice

On January 1, 2010, Rayma Co.leased equipment by signing a six-year lease that required six payments of $30, 000 due on January 1 of each year with the first payment due January 1, 2010.The equipment remains the property of the lessor at the end of the lease, and Rayma does not guarantee any residual value.Using an 8% cost of capital, Rayma capitalized the lease on January 1, 2010, in the amount of $149, 781.What is the total amount of lease liability (including interest) Rayma should report as of December 31, 2011?

A) $ 99, 364
B) $107, 313
C) $119, 781
D) $121, 415