Testbank Multiple Choice Question 66 x Your answer is incorrect. Try again. On January 1, 2021, Ivanhoe Corporation signed a 5-year noncancelable lease for equipment. The terms of the lease called for Ivanhoe to make annual payments of $210000 at the beginning of each year for 5 years with title passing to Ivanhoe at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Ivanhoe uses the straight-line method of depreciation for all of its fixed assets. Ivanhoe accordingly accounts for this lease transaction as a finance lease. The lease payments were determined to have a present value of $875672 at an effective interest rate of 10%. With respect to this lease, for 2022 Ivanhoe should record o interest expense of $66567. O interest expense of $87567. O interest expense of $52224. O interest expense of $73224