5) The Truck Rental Company (as lessor) leases a new truck to the Speedy Delivery Company (as lessee) for a period of 10 years. The agreement requires annual lease payments of $500, payable in advance. In essence, the first payment is made immediately when the lease agreement is signed; the second lease payment is made at the end of the first year: the third lease payment is made at the end of the second year, etc. Speedy discounts the required lease payments at its own incremental borrowing rate of 10% thus giving a present value of minimum lease payments of $3,380 (this amount is rounded up to the nearest $1 for ease of calculations and should be used in this question) If Speedy (as lessee) classifies the lease as a Finance Lease (and accounts for it using the financing method), which of the following is a correct statement: A) The interest expense recognized during the first year of the lease will be $338. B) The reported value of the lease payable (obligation under finance lease) at the end of the first year after the second payment has been made will be $2,668 (rounded up to nearest $1). C) Amortization of the leased truck (based on the straight-line depreciation method) will amount to $288 each year over the 10-year term of the lease. D) The total lease-related expense (i.e., interest plus depreciation) to be reported during the first year of the lease will be $576. E) The total lease-related expense (i.e., interest plus depreciation) to be reported over the 10-year term of the lease will be $5,760