In the long-term liabilities section of its balance sheet at December 31, 2006, Mene Co. reported a capital lease obligation of $75,000, net of current portion of $1,364. Payments of $9,000 were made on both January 2, 2007, and January 2, 2008. Mene’s incremental borrowing rate on the date of the lease was 11% and the lessor’s implicit rate, which was known to Mene, was 10%. In its December 31, 2007 balance sheet, what amount should Mene report as capital lease obligation, net of current portion?
- $66,000
- $73,500
- $73,636
- $74,250