Liberty Diner leased restaurant equipment at an interest rate of 6% per annum. The lease term is eight months with monthly payments of $10,000 due at the end of each month. Present value of the lease payments is $79,000. Liberty elected the short-term lease option. What is the effect of the lease on Liberty's earnings during the eight-month term (ignore taxes)?

Group of answer choices

No expense within the 8-month period.

An expense of $10,000 at the end of each of the 8 months.

Interest expense and amortization expense during 8 months that will each sum up to be $79,000.

An initial expense of $79,000.

An expense of $10,000 initially and $10,000 at the end of 7 months.