On January 1, 2020, Taylor Stores Inc. sign a 3-year lease agreement to lease an accounting system from Intuit Company. The agreement requires lease payment $17,620 made at the beginning of each year, starting January 1, 2020.

Based on the lease agreement, Taylor properly classifies the lease as finance lease and amortize the leased asset using striahgt-line method. In addition, Taylor prepares the following lease amortization schedule.

Date Lease Payment Interest on Lease Liability Reduction of Lease Lease Liability Balance

1/1/20 $49,924

1/1/20 $176,620. $17,620 $32,304

1/1/21 $176,620 $1,938 $15,682 $16,622

1/1/22 $176,620 $997 $16,623

At the end of 2021, the journal entry by Taylor to account for the lease-related expense would include:

A: a debit to lease expense by $17,620

B: a debit to amortization expense by $16,623

C: a credit to lease liability by $997

D: a credit to accumulated amortization - Leased asset by $9,985