When the market rate of interest was 9%, Kennesaw Van Lines leased several transfer trucks. The annual payments are $1,000,000 and the life of the lease is 8 years. It is estimated that the useful life of the trucks is 10 years. The present value interest factors for 9% are provided below: The company should record the acquisition of the trucks (rounded to nearest thousand) as an asset with a cost of:
a.$422,000.
b.$502,000.
c.$5,535,000.
d.$6,418,000.

Question

When the market rate of interest was 9%, Kennesaw Van Lines leased several transfer trucks. The annual payments are $1,000,000 and the life of the lease is 8 years. It is estimated that the useful life of the trucks is 10 years. The present value interest factors for 9% are provided below:  The company should record the acquisition of the trucks (rounded to nearest thousand) as an asset with a cost of: 
a.$422,000.
b.$502,000.
c.$5,535,000.
d.$6,418,000.

When the Market Rate of Interest Was 9%, Kennesaw Van