Mann Co$.$ is the lessor in a six$-$year lease that the lessor classifies as a sales$-$type lease. The lease payments begin December $31,2021.$ The agreement specifies that Woo Corp. make equal annual lease payments on December $31$ of each year. In its $2022$ income statement:

Mann will report interest revenue and amortization expense.

Woo will report interest expense and lease expense.

Woo will report interest expense and amortization expense.

Mann will report interest revenue and depreciation expense.