Lessee, Inc. leased equipment from Lessor Company under a four-year lease requiring equal annual payments of $172,076, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no salvage value. If Lessee, Inc.'s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Lessee, Inc.) is 8%, Assuming that this lease is properly classified as a finance lease, what is the amount of Lease Liability reduction recorded in the second year of the lease. PV Annuity Due 8%, 4 periods 3.57710 10%, 4 periods 3.48685 $172,076 O $136,600 $126.480 $122,833 The Corporation is a lessee with a finance lease. The asset is recorded at $450,000 and has an economic life of 8 years. The lease term is 5 years. The asset is expected to have a fair value of $150,000 at the end of 5 years, and a fair value of $50,000 at the end of 8 years. Similar assets are depreciated using the straight line method. 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 amortization expense would the lessee record for the first year of the lease? Lessor Company leased machinery to Lessee Company on September 1, 2020, for a ten-year period expiring August 31, 2030. Equal annual payments under the lease are $250,000 and are due on September 1 of each year. The first payment was made on September 1, 2020. The rate of interest used by Lessor and Lessee is 9%. The lease receivable before the first payment is $1,750,000 and the cost of the machinery on Lessor's accounting records was $1,550,000. Assuming that the lease is appropriately recorded as a sale for accounting purposes by Lessor, what amount of interest revenue would Lessor record for the year ended December 31, 2020? The Company at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $3,000,000 Estimated litigation expense 4,000,000 Extra depreciation for taxes (6.000.000) Taxable income $ 1.000.000 The estimated litigation expense of $4,000,000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2,000,000 in each of the next three years. The income tax rate is 30% for all years. The deferred tax asset to be recognized is O $1.200,000 $600,000 $300,000 $900,000