Hurley Corporation leased equipment for its 8-year useful life, agreeing to pay $90,000 at the beginning of the lease term on January 1, 20X0, also paying $90,000 annually on January 1 for the next 7. The present value of the 8 lease payments on January 1, 20X0 at a rate of 10% was $530,000. What amount must Hurley report as total expense (depreciation and interest) in the Statement of Income and Expenses of 20X0? Or $110,250 $104,250 $105,650 OR $114,650