Jackson Corporation leased machinery under a finance lease arrangement with its lessee. At January 1, 2018, the first day of the lease, the asset and lease obligation were recorded for $68,000. The first lease payment of S13276 was due December 31, 2018 and the interest rate they used in their calculations was 7%. The lease term was 10 years. Which of the following best describes what would be reported on Jackson's statement of income for the year ending December 31, 2018? 

• $13,276 lease expense 
• $13.276 lease expense, 36.800 depreciation expense 
• $4.760 interest expense. $2,040 depreciation expense 
• $4.760 interest expense, $6.800 depreciation expense

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