JMC Company has a machine with a cost of $750,000 which also is its fair value on the date the machine is leased to Sierra Company. The loase is for 6 years and the machine is estimated to have an unguaranteed residual value of $75.000. If the lessor's interest rate implicit in the lease is 12%, the six beginning-of-the-year lease payments would be O A $154,623 OB. $146,587 C. $125,000 D. 5162874 JMC Co leased a machine to Sierra Co. Assume the lease payments were made on the basis that the residual value was guaranteed and JMC gets to recognize all the profits. At the end of the lease term, before the lessee transfers the asset to the lessor the leased asset and liability accounts have the following balances Right-of-Use Asset $400,000 Less accumulated depreciation--finance lease 384,000 $ 16.000 Interest payable $ 1,520 Lease liability 14.480 $16.000 If, at the end of the lease, the fair value of the residual value is $11,800, what gain or loss should Sierra record? A 511,800 gain OB 56,280 loss C. $2,680 gain D.54.200 loss