Exhibit 21-4 on January 1, 2010, General Leasing Company Entered

Exhibit 21-4 On January 1, 2010, General Leasing Company entered into a direct financing lease with a lessee, Lee Company.The lease agreement calls for five equal annual payments of $60, 000 at the beginning of each year with the first payment due on January 1, 2010.The leased property has an estimated residual value of $10, 000, which Lee does not guarantee.The property remains the property of General at the end of the lease term.General desires a 12% rate of return.Present value factors for a 12% interest rate are as follows:
$\begin{array}{llr} \text { Present value of \( \$ 1 \) for \( n=1 \) } &0.892857\\ \text { Present value of \( \$ 1 \) for \( n=5 \) } &0.567427\\ \text { Present value of an ordinary annuity for \( n=5 \) } &3.604776\\ \text { Present value of an annuity due for \( n=5 \) } &4.037349\\\end{array}$



- Refer to Exhibit 21-4.What is the amount of the credit to Unearned Interest: Leases to be recorded by General Leasing on January 1, 2010? (Round the answer to the nearest dollar.

A) $73, 713
B) $68, 039
C) $67, 759
D) $62, 085