On January 1, 2019, Sands Inc. sianed a five-year lease for equi $1,125,000. Terms of the lease call for annual payments of $245,000 at the beqin vears and no salvage years beginning January 1, 2019. The equipment has an estimated useful value. Both Sands and the lessor use straight-line depreciation, the lessor's implicit and lessee's incremental rates are both 10%, and the equipment will revert back to the lessor at the end of the lease. pment with a fair market value of life of 7 years and n Required: For Sands Inc., determine how much should be recorded in 2019 for (a) Interest Expense; and (b) Depreciation Expense