On January 1, 2003, Plentiva Company Signed a Five-Year Lease

Multiple Choice

On January 1, 2003, Plentiva Company signed a five-year lease that required equal payments of $55,000 at the end of each year. The cost value of the lease equipment was $100,000. The estimated residual value of the equipment was $25,000, which was guaranteed by the lessee. The implicit interest rate in the lease was 10%. On January 1, 2003, what amount did Plentiva Company debit to Lease Receivable?

A) $224,016.30
B) $208,493.30
C) $229,342.60
D) $327,652.20