Multiple Choice Question 104 On January 2, 2018, Sandhill, Inc. signed a 10-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $260000 starting at the beginning of the first year, with title passing to Sandhill at the expiration of the lease. Sandhill treated this transaction as a capital lease. The drill press has an estimated useful life of 15 years, with no salvage value. Sandhill uses straight-line depreciation for all of its plant assets. Aggregate lease payments were determined to have a present value of $1668591, based on implicit interest of 9%. In its 2018 income statement, what amount of interest expense should Sandhill report from this lease transaction? $166859 $137239 $126773 $0