Exercise 21-13 On January 1, 2017, a machine was purchased for $906,400 by Indigo 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 Sweet Inc. on January 1, 2017, at an annual rental of $190,800. Other relevant information is as follows. 1. The lease term is for 3 years. 2. Indigo Co. incurred maintenance and other executory costs of $25,300 in 2017 related to this lease. 3. The machine could have been sold by Indigo Co. for $946,400 instead of leasing it. 4. Sweet is required to pay a rent security deposit of $31,800 and to prepay the last month's rent of $15,900. (a) How much should Indigo Co. report as income before income tax on this lease for 2017? Income before income tax (b) What amount should Sweet Inc. report for rent expense for 2017 on this lease? Rent expense $