单选题 Assume the present value discounted by 15% is $ 3500000 and it is used the straight-line depreciated method. Find out the reported lease related expense for the first year. The lease is a 10-year capital lease with annual payments of $ 500000. There is a guaranteed residual value of $ 500000 at the end of the lease.

A、

A. $ 525000.
B、

B. $ 830000.
C、

C. $ 970000.

【正确答案】 B

【答案解析】Capital lease affects on the income statement: Step1 : Calculate the depreciation charge: ( $ 3500000- $ 450000)/10 = $ 305000. Step2 : Calculate the interest expense : $ 3500000×0.15 = $ 525000. Total expense : $ 305000 + $ 525000 = $ 830000.