On January 1, 2014, Alert Construction signed a lease for a machine for $15,000 per year for 7 years.The first payment is due on December 31, 2014.The lease covers 70 per cent of the asset's useful life, and Alert expects to return the asset at the end of the lease.If Alert had borrowed money to buy the machine, they estimate the interest rate would have been 8%.The expense that would be recorded for the lease on the income statement in 2014 is closest to?

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The Answer of On January 1, 2014, Alert Construction signed a lease for a machine for $15,000 per year for 7 years.The first payment is due on December 31, 2014.The lease covers 70 per cent of the asset's useful life, and Alert expects to return the asset at the end of the lease.If Alert had borrowed money to buy the machine, they estimate the interest rate would have been 8%.The expense that would be recorded for the lease on the income statement in 2014 is closest to?

On January 1, 2014, Alert Construction Signed a Lease for a Machine