On January 1, 2016, Madison Company Signed a Four-Year Lease

Multiple Choice

On January 1, 2016, Madison Company signed a four-year lease requiring annual payments of $15,000 with the first payment due on January 1, 2016. The fair value of the equipment leased was $50,000. Madison's incremental borrowing rate was 6%. Actuarial information for 6% follows:
Assuming the lease qualifies as a capital lease, what amount should be recorded as leased equipment under capital leases on January 1, 2016 rounded to the nearest dollar) ?

A) $48,185
B) $50,000
C) $51,977
D) $55,095