If Alt accounts for the lease as an operating lease, what expenses will be recorded as a consequence of the lease during the fiscal year ended December 31, 2021?

Amortization Expense and Interest Expense

Lease Expense

Amortization Expense

Interest Expense

Alt Corporation enters into an agreement with Yates Rentals Co. on January 1, 2021 for the purpose of leasing a machine to be used in its manufacturing operations. The following data pertain to the agreement: (a) The term of the noncancelable lease is 3 years with no renewal option. Payments of $574.864 are due on January 1 of each year. (b) The fair value of the machine on January 1, 2021, is $1.600.000. The machine has a remaining economic life of 10 years, with no salvage value. The machine reverts to the lessor upon the termination of the lease (c) Alt depreciates all machinery it owns on a straight-line basis. (d) Alt's incremental borrowing rate is 10% per year. Alt does not have knowledge of the 8% implicit rate used by Yates. (e) Immediately after signing the lease, Yates finds out that Alt Corp. is the defendant in a suit which is sufficiently material to make collectibility of future lease payments doubtful. Period 1 2 3 4 5 6 7 8 9 10 Future Value of Ordinary Annuity of 1 596 69 89 1096 12% 1.00000 1.00000 1.00000 1.00000 100000 205000 206000 2.08000 2.10000 2.12000 3.15250 3.18360 3.24640 3.31000 3.37440 4.31013 4.37462 4.50611 4.64100 4.77933 5.52563 5.63709 5.86660 6.10510 6.35285 6.80191 6.97532 7.33592 7.71561 8.11519 8.14201 8.39384 8.92280 9.48717 10.08901 9.54911 9.89747 10.63663 11.43589 12.29969 11.02656 11.49132 12.48756 13.57948 14.77566 12.57789 13.18079 14.48656 15.93743 17.54874 Period 1 2 3 4 5 Present Value of an Annuity Due of 1 5% 696 8% 1096 1296 1.00000 1.00000 1.00000 1.00000 100000 1.95238 1.94340 1.92593 1.90909 1.89286 2.85941 2.83339 2.78326 2.73554 2.69005 3.72325 3.67301 3.57710 3.48685 3.40183 4.54595 4.46511 431213 4.16986 4.03735 5.32948 5.21236 499271 4.79079 4.60478 6.07569 5.91732 5.62288 5.35526 5.11141 6.78637 6.58238 6.20637 5.86842 5.56376 7.46321 7.20979 6.74664 6.33493 5.96764 8.10782 7.80169 7.24689 6.75902 6.32825 7 8 9 10 If Alt accounts for the lease as an operating lease. what expenses will be recorded as a consequence of the lease during the fiscal year ended December 31, 2021