JHS Corporation is a lessee with a capital lease. The asset is recorded at $1,000,000 and has an economic life of 10 years. The lease term is 8 years. The asset is expected to have a fair value of $300,000 at the end of 8 years, and a fair value of $100,000 at the end of 10 years. The lease agreement provides for the transfer of title of the asset to the lessee at the end of the lease term. What amount of depreciation expense would the lessee record for the first year of the lease? a. $70,000 b. $90,000 c. $87,500 d. $80,000 QUESTION 3 The following information was taken from the 2018 financial statements of Stromboli Corporation: Bonds payable, January 1,2018 Bonds payable, December 31,2018 $400,000 4,900,000 Click Save and Submit to save and submit. Click Save All Answers to save all answers