On January $1,2025,$ Ivanhoe Corporation signed a ten$-$year noncancelable lease for certain machinery. The terms of the lease called

for Ivanhoe to make annual payments of $$230000$ at the end of each year for ten years with the title passing to lvanhoe at the end of

this period. The machinery has an estimated useful life of $15$ years and no salvage value. Ivanhoe uses the straight$-$line method of

depreciation for all of its fixed assets. Ivanhoe accordingly accounted for this lease transaction as a finance lease. The lease payments

were determined to have a present value of $$1543319$ at an effective interest rate of $8\%.$ With respect to this lease, Ivanhoe should

record for $2025$

interest expense of $$102888$ and amortization expense of $$87555.$

interest expense of $$123466$ and amortization expense of $$102888.$

lease expense of $$230000.$

interest expense of $$107466$ and amortization expense of $$102888.$