Pepper, Inc -At the End of Year 1,Pepper Will Make a Payment

Pepper, Inc. agrees to lease equipment from the Blue Corporation for 10 years at $25,000 at the end of each year. The equipment has a fair value of $175,000 and an estimated useful life of 10 years. The lease includes a guaranteed residual value of $10,000. In addition to the lease payments, Pepper will pay $5,000 per year for a maintenance agreement. Pepper can finance this lease with its bank at a 12% rate. The lessor's implicit lease rate, known to the lessee, is 10%.
Present value interest factors are:
$$\begin{array} { l c c } & \underline { \mathbf { 1 0 \% } } & \underline { \mathbf { 1 2 \% } } \\\text { PVIF \$1 } 10 \text { periods } & 0.38554 & 0.32197 \\\text { PVIF Annuity } 10 \text { periods } & 6.14457 & 5.65022\end{array}$$
-At the end of Year 1,Pepper will make a payment of $30,000.Which one of the following entries will properly record this payment? (Round all calculations to the nearest whole dollar amount.)

A) DR Obligation under capital lease $~~~~~~~~$ 30,000
$~~~~~~~~$ CR Cash $~~~~~~~~$$~~~~~~~~$$~~~~~~~~$$~~~~~~~~$$~~~~~~~~$$~~~~~~~~$ 30,000
B) $\begin{array} { l l r r } \text { DR } & \text { Obligation under capital lease } & 14,253 & \\\text { DR } & \text { Interest expense } & 15,747 & \\& \text { CR Cash } & & 30,000\end{array}$
C) $\begin{array} { l l r r } \text { DR } & \text { Obligationunder capital lease } & 9,253 & \\\text { DR } & \text { Maintenance expense } & 5,000 & \\\text { DR } & \text { Interest expense } & 15,747 & \\& \text { CR Cash } & & 30,000\end{array}$
D) $\begin{array} { l l r l } \text { DR } & \text { Obligation under capital lease } & 25,000 & \\\text { DR } & \text { Maintenance expense } & 5,000 & \\& \text { CR Cash } & & 30,000\end{array}$