Saved Help Save & Exit Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discounted at 9% was $70,000. Ten annual lease payments of $10,000 are due each year beginning July 1, 2021. Smith Co. had constructed the equipment recently for $61,000, and its retail fair value was $70,000 What amount did Smith Co. record in its Income statement for the reporting year ending December 31, 2021, in connection with the lease? [ignore taxes.) Multiple Choice o 0 $9,000 o o 0 $1,700 0 $2,700 o $14.400