On January 1, 2021, Dean Corporation signed a 10-year noncancelable lease for certain machinery. The terms of the lease called for Dean to make annual payments of $220000 at the end of each year for 10 years with the title passing to Dean at the end of this period. The machinery has an estimated useful life of 15 years and no salvage value. Dean uses the straight-line method of depreciation for all of its fixed assets. Dean accordingly accounted for this lease transaction as a financial lease. The lease payments were determined to have a present value of $1342016 at an effective interest rate of 8%. With respect to this lease, Dean should record for 2021

a. interest expense of $89468 and amortization expense of $76134.

b. interest expense of $91361 and amortization expense of $134202.

c.lease expense of $107361.

d. interest expense of $107361 and amortization expense of $89468.