13. On January 1, 2019, ABC Co signed a ten-year non-cancellable lease for machinery. The terms of the lease called for ABC Co make annual payments of $200,000 at the end of each year for ten years ABC Co accordingly accounted for this lease transaction as a capital (finance) lease. The lease payments were determined to have a present value of $772,100 at an effective interest rate of 7%. It was also determined that the fair value of the machinery on January 1, 2019 was $781,200. With respect to this lease for the year ending December 31, 2019, ABC Co should report: (3 Points) lease expense of $54,684 lease expense of $54,047 interest expense of $54,684 interest expense of $54,047