Detailed Answer
(b) On 1/2/Y2, Mene made a lease payment of $9,000,
which included payment of the current portion of the lease obligation
($1,364) and interest ($9,000 – $1,364 = $7,636). After
this payment, the total lease obligation was $75,000. The
1/2/Y3 payment would include interest of $7,500 ($75,000 ×
10%), and principal of $1,500 ($9,000 – $7,500). This $1,500
amount would represent the current portion of the lease obligation
at 12/31/Y2, so the long-term lease obligation net of the
current portion at 12/31/Y2 is $73,500 ($75,000 – $1,500).