Karla Salons leased equipment from Smith Co, on July 1, 2021, in a finance lease. The present value of the lease payments discounted at 8% was $61,600. Ten annual lease payments of $8,500 are due each year beginning July 1, 2021. Smith Co. had constructed the equipment recently for $53,500, and its retail fair value was $61,600. What amount did Smith Co. record in its income statement for the reporting year ending December 31, 2021, in connection with the lease? (ignore taxes.) 02 Multiple Choice $8,100. $2,124. $10,224.