On August 1, 2018, Dana Corporation signed an eight-year noncancelable lease for certain machinery. The terms of the lease called for Dana to make annual payments of $220,000 starting August 1, 2018 for eight years with the title passing to Dana at the end of this period. The machinery has an estimated useful life of 15 years and no salvage value. Dana uses the straight-line method of depreciation for all of its fixed assets. Dana accordingly accounted for this lease transaction as a finance lease. The lease payments were determined to have a present value of $1,365,401 at an effective interest rate of 8%. With respect to this capitalized lease, Dana should record for 2018

Depreciation expense =

Interest expense =