5. On January 1, 2018, Oil Corporation signed a five-year non-cancelable lease for equipment. The terms of the lease called for Oil to make annual payments of 180,000 at the beginning of each year for five years with title passing to Oil at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Oil uses the straight-line method of depreciation for all of its fixed assets. Oil accordingly accounts for this lease transaction as a finance lease. The minimum lease payments were determined to have a present value of 750,578 at an effective interest rate of 10%. With respect to this lease, for 2018 Oil should record (4 Points) rent expense of 180.000 interest expense of 57,058 and depreciation expense of 150 116 interest expense of 57.058 and depreciation expense of 107 225 Interest expense of 90,000 and depreciation expense of 181.956