Roscoe Company entered into a lease of special equipment to Mac Company. The lease term was six years. The equipment cost Roscoe $40,000 and Roscoe plans to earn a $4,000 dealer profit. Roscoe's implicit rate on the lease is 12 percent.
As a result of this agreement, Roscoe will receive year-end lease payments of:
A) $7,333.
B) $8,213.
C) $10,702.
D) $12,090.