Question 8 options:On January 1, 2004, Digital, Inc. leased heavy machinery from Young Leasing Compa

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Question 8 options:On January 1, 2004, Digital, Inc. leased heavy machinery from Young Leasing Company. The terms of
the lease require annual payments of $20,000 for twenty years beginning on December 31, 2004. The
interest rate on the lease is 10%. Assume the lease qualifies as a capital lease.
Calculate the amount of depreciation expense recorded by Digital, Inc. in 2006 related to the
leased asset. Assume Digital, Inc. uses the double-declining balance depreciation method. Enter
your answer with two places after the decimal point (i.e., $123,456.78).
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