On January 1, 2018, Green Co. recorded a right-of-use asset of $270,360 in an operating lease. The lease calls for ten annual payments of $40,000 at the beginning of each year. The interest rate charged by the lessor was 10%. Lease expense for 2018, will be: O a) $16,964. b) $12,964. c) $27,036. d) $40,000. For a sales-type lease, the present value of unguaranteed residual value a) is not included in cost of goods sold b) is not included in lease receivable C) is included in sales revenues d) is included in amortization expense by lessor