On 1/31/Y1, Bailey Company leased a new machine from Sussex Corp. The following data relate to the lease transaction at its inception: E Lease term Annual rental payable at beginning of each lease year Useful life of machine Implicit interest rate Present value of an annuity of 1 in advance for 10 periods at 10% Present value of annuity of 1 in arrears for 10 periods at 10% Fair value of the machine Depreciation method Save for Later $ 4 R The lease has no renewal option, the possession of the machine reverts to Sussex when the lease terminates, and the machine does have alternative uses. The first lease payment of $50,000 is paid at the inception of the lease. What amount does Sussex Corp. report for depreciation expense in year 1? % 5 T O $0. Because Bailey, the lessee records a lease liability, Bailey also records depreciation expense. O $40,000 O $26,667 $33,800 6 10 years $50,000 II 15 years Y 10% 6.76 6.15 $400,000 & 7 Straight line MacBook Pro U Attempts: 1 of 3 used 8 1 9 Submit Answer 0 ) 0 O