Exercise 21-14 On February 20, 2017, Culver Inc. purchased a machine for $1,449,600 for the purpose of leasing it. The machine is expected to have a 10-year life, no residual value, and will be depreciated on the straight-line basis. The machine was leased to Larkspur Company on March 1, 2017, for a 4-year period at a monthly rental of $18,900. There is no provision for the renewal of the lease or purchase of the machine by the lessee at the expiration of the lease term. Culver paid $27,840 of commissions associated with negotiating the lease in February 2017. (a) What expense should Larkspur Company record as a result of the facts above for the year ended December 31, 2017? Rent Expense (b) What income or loss before income taxes should Culver record as a result of the facts above for the year ended December 31, 2017? (Hint: Amortize commissions over the life of the lease.) Income from lease before taxes