Montana Inc. sells computer systems . Montana leases computers to Utah Company on June 30 2021. The computers cost Montana $12 million to manufacture . The lease is non- cancelable and has the following terms : Lease payments: $2,466,754 semiannually; first payment due June 30, 2021; remaining payments due December 31 and June 30 each year through December 31, 2025. Lease term : years (10 semi -annual payments ). No residual value ; no bargain purchase option . Economic life of equipment : years . Implicit interest rate and lessee's incremental borrowing rate: 10% per year. Fair value of the computers at June 30, 2021: $20 million. Collectability of the rental payments is reasonably assured, and there are no lessor costs yet to be incurred. 10 Montana would account for this lease as: AA finance lease . B) A sales type lease without selling profit . C) A sales type lease with selling profit . D) An operating lease . 11. Utah Company would account for this lease as: A) A finance lease . B) A sales type lease without selling profit. A sales type lease with selling profit. D) An operating lease . The lease payable balance on Utah's books after the December 31 , 2021 payment is closest to: A $ 15,943,154 B) $ 17,533,246 C) $ 21,000,000 D) \$15,06t 12 13 Total interest revenue Montana would report on its year end December 31, 2021 income statement relative to this lease is closest to : A) $ 4,933,508 B $1,673,820 ) $ 876,662 \$2,466,754