Current Attempt in Progress

On January $1,2023,$ Ivanhoe Corp. signed a ten$-$year non$-$cancellable lease for new machinery.

The terms of the lease called for Ivanhoe to make annual payments of $$107000$ at the end of

each year for ten years, with title to pass to Ivanhoe at the end of the lease period. Ivanhoe

accordingly accounted for this lease transaction as a finance lease. The machinery has an

estimated useful life of $15$ years and no residual value. Ivanhoe uses straight$-$line depreciation

for all its property, plant and equipment. The lease payments were determined to have a

present value of $$717979$ at an effective interest rate of $8\%.$ It was also determined that the

fair value of the machinery on January $1,2023$ was $$683500.$ With respect to this lease, for

the year ending December $31,2023,$ Ivanhoe should report $($rounded to the nearest dollar$)$

interest expense of $$57438$ and depreciation expense of $$47865.$

interest expense of $$53930$ and depreciation expense of $$44357.$

interest expense of $$57438$ and depreciation expense of $$71798.$

lease expense of $$107000,$ and depreciation expense of $$47865.$