On January 1, 2020, Langston Co. leases a machine valued at $450,000 from Lessors-Are-Us with an economic life of 12 years. The 10-year lease agreement calls for annual lease payments of $50,000 starting immediately on January 1, 2020. Langstons incremental borrowing rate is 4%. Legal ownership of the machine does not transfer to Langston.

Assume that Langston records a lease liability of $421,767 at signing.

a. If Langston records this as a finance lease, what is Langston's interest expense for 2020 (year 1)?	[ Select ] ["$18,000", "$14,871", "$42,177", "$16,871"]
b. If Langston records this as a finance lease, what is Langston's amortization of Right-of-Use asset for 2020 (year 1) ?	[ Select ] ["$35,147", "$42,177", "$37,500", "$45,000"]
c. If Langston records this as an operating lease, what is Langston's amortization of Right-of-Use asset for 2020 (year 1) ?	[ Select ] ["$33,129", "$2,823", "$37,500", "$35,129"]
d. If Langston records this as a finance lease, what is Langston's interest expense for 2021 (year 2)?