Current Attempt in Progress

On January $1,2023,$ Sunland Corp. signed a ten$-$year non$-$cancellable lease for new machinery. The terms of the lease called

for Sunland to make annual payments of $$97000$ at the end of each year for ten years, with title to pass to Sunland at the end

of the lease period. Sunland accordingly accounted for this lease transaction as a finance lease. The machinery has an

estimated useful life of $15$ years and no residual value. Sunland uses straight$-$line depreciation for all its property, plant and

equipment. The lease payments were determined to have a present value of $$650878$ at an effective interest rate of $8\%.$ It

was also determined that the fair value of the machinery on January $1,2023$ was $$669000.$ With respect to this lease, for the

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

lease expense of $$97000,$ and depreciation expense of $$43392.$

interest expense of $$52070$ and depreciation expense of $$43392.$

interest expense of $$53822$ and depreciation expense of $$45144.$

interest expense of $$52070$ and depreciation expense of $$6508.$