At the end of 8 years, title to the airplane will be conveyed to Wasala. How much expense should Wasala recognize in Year Two? (round to the nearest dollar)

The Wasala Corporation leases an airplane on January 1, Year One for eight years for payments of $20,000 per year beginning immediately. The plane has an expected life of 10 years. The prime rate of interest is 6 percent but Wasala has an incremental borrowing rate of 8 percent. The present value of an ordinary annuity of $1 at 6 percent for 8 years is 6.22 and the present value of an ordinary annuity of $1 at 8 percent for 8 years is 5.75. The present value of an annuity due of $1 at 6 percent for 8 years is 6.58 and the present value of an annuity due of $1 at 8 percent for 8 years is 6.19. At the end of 8 years, title to the airplane will be conveyed to Wasala. How much expense should Wasala recognize in Year Two? (round to the nearest dollar)
$17,880
$18,108
$19,058
$19,748

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