Technoid Inc. manufactures computer systems. Technoid leases computers to Lone Star Company on January 1, 2018. The manufacturing cost of the computers was $12 million. This noncancelable lease had the following terms:

• Lease payments: $2,466,754 semiannually; first payment at January 1, 2018; remaining payments at June 30 and December 31 each year through June 30, 2022.
• Lease term: five years (10 semiannual payments).
• No residual value; no purchase option.
• Economic life of equipment: five years.
• Implicit interest rate and lessee's incremental borrowing rate: 10%.
• Fair value of the computers at January 1, 2018: $20 million.

17. What amount related to the lease would Technoid report in its 2018 income statement?

Group of answer choices

$876,662.

$1,673,820.

$9,673,820.

$1,653,324.