Exercise 21-13 On January 1, 2017, a machine was purchased for $949,600 by Blue Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to Kingbird Inc. on January 1, 2017, at an annual rental of $219,600. Other relevant information is as follows 1The lease term is for 3 years. 2. Blue Co. incurred maintenance and other executory costs of $27,400 in 2017 related to this lease. 3. The machine could have been sold by Blue Co. for $989,600 instead of leasing it. 4. Kingbird is required to pay a rent security deposit of $36,600 and to prepay the last month's rent of $18,300 (a) How much should Blue Co. report as income before income tax on this lease for 20177 Income before income tax (b) What amount should Kingbird Inc. report for rent expense for 2017 on this lease? Rent expense s Question Attempts: O of 3 used