On January 1, 2010, Larry, Inc

Multiple Choice

On January 1, 2010, Larry, Inc.leased equipment, signing a five-year lease that requires five payments of $40, 000 due on January 1 of each year with the first payment due January 1, 2010.Larry accounted for the lease as a capital lease.Using a rate of 9%, Larry determined the present value on January 1, 2010, to be $169, 589.What is the amount of the long-term lease obligation that Larry should report on its December 31, 2011 balance sheet?

A) $ 70, 364
B) $101, 252
C) $112, 915
D) $129, 589