20. On January 1, Lessee Company leases equipment with a useful life of 5 years for a 6-year lease term. Payments of $88,000 are due at the beginning of each year. The incremental borrowing rate is 4%. The present value of the payments is $407,440. Which of the following is true? a. Interest expense at the end of the first year is $407,440 x .04 b. Amortization expense at the end of the first year is $407,440 divided by 6. Lease expense at the end of the first year is $88,000. d. Interest expense at the end of the first year is $319,440 x .04 C