aggregate lease payments were determined to have a present value of 92 170 based on 576319

On January 2, 2007, Lafayette Machine Shops, Inc. signed a 10 year noncancelable lease for a heavy duty drill press, stipulating annual payments of $15,000 starting at the end of the first year, with title passing to Lafayette at the expiration of the lease. Lafayette treated this transaction as a capital lease. The drill press has an estimated useful life of 15 years, with no salvage value. Lafayette uses straight line depreciation for all of its fixed assets. Aggregate lease payments were determined to have a present value of $92,170, based on implicit interest of 10%. For 2007 Lafayette should record