Use the Following Information for Questions 62 and 63

question 27

Multiple Choice

Use the following information for questions 62 and 63.
On January 1, 2014, Sauder Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for Sauder to make annual payments of $150,000 at the beginning of each year for five years with the title passing to Sauder at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Sauder uses the straight-line method of depreciation for all of its fixed assets. Sauder accordingly accounts for this lease transaction as a capital lease. The minimum lease payments were determined to have a present value of $625,479 at an effective interest rate of 10%.
-In 2015, Sauder should record interest expense of

• A) $32,547.
• B) $52,303.
• C) $47,548.
• D) $52,302.

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Definitions:

Peripheral Nervous System

The part of the nervous system that consists of nerves and ganglia outside of the brain and spinal cord, connecting the central nervous system to limbs and organs.

Circulatory System

The body's system responsible for the movement of blood and lymph, facilitating the distribution of nutrients, oxygen, and waste removal.

Run

To move at a speed faster than a walk, continually propelling oneself forward with legs.

Motor Neurons

Nerve cells that initiate and control the movement of muscles.