Bush Corporation signed a lease for equipment from EZ Leasing Company on January 1, Year 1, for a period of ten years at $50,000 per year, including...

Bush Corporation signed a lease for equipment from EZ Leasing Company on January 1, Year 1, for a period of ten years at $50,000 per year, including insurance of $3,000 and taxes of $2,000 per year. The equipment had a useful life of fifteen years. At the end of the lease, Bush will have the option of buying the equipment outright for a dollar. Bush's incremental borrowing rate is 8%, and the rate implicit in the lease (which is known to Bush) is 6%. Lease payments are due every year on December 31. The present value of an annuity for various terms and rates are as follows:8%6.7108.559On its financial statements for the year ended June 30, Year 1, Bush will display the following:AccruedInterest(Points: 10)9,936 $ 11,040 $ 12,078 9,936

1600020000 92272106700 14428 200000200000 PV of $1PV of an annuity 5.7675.3350.540.467 10800093400 14600 8 years8%0.5405.767 Carrying value of olddebt200000 108,000160002000092,272...