Lone Star Company on January 1, 2018. The manufacturing cost of the compu (Questions 5-8) Technoid Inc. manufactures computer systems. Techzid y million. This noncancelable lease had the following terms: Lease payments: $2,466,754 semiannually; first payment at January 1, 2018, payments at June 30 and December 31 each year through June 30, 2022. Lease term: five years (10 semiannual payments). No residual value; no purchase option. Economic life of equipment: five years. Implicit interest rate and lessee's incremental borrowing rate: 10% Fair value of the computers at January 1, 2018: $20 million. 5. Lone Star Company would account for this as: A. A finance lease. B. A sales type lease without selling profit. C. A sales type lease with selling profit. D. An operating lease. 6. What is the outstanding balance of the lease liability in Lone Star's June 30, 2018, balance sheet? (Round your answer to the nearest dollar.) A. $15,943,154. B. $17,533,246. C. $21,000,000. D. None of these answer choices is correct. 7. Technoid would account for this as: Ere.10 A. A finance lease. B. A sales-type lease with selling profit. C. A sales-type lease without selling profit. In D. An operating lease. Yotab air no bron 8. What amount related to the lease would Technoid report in its 2018 income statement? A. $876,662. B. $1,653,324. C. $1,673,820. D. $9,673,820.