The Following Information Relates to a Lease Between Canneries Limited

Multiple Choice

The following information relates to a lease between Canneries Limited (lessor) and Fruiterers Limited (lessee) .3 lease payments of $20 000 each are made annually in advance and a final lease payment of $15 000 is made at the end of the 3 year lease term.The implicit interest rate is 10%.The amount of the interest expense that is recognised when the second payment of the lease is paid is:

A) $4598.
B) $6598.
C) $7500.
D) $15 402.