On January 1, 2021, Sandhill Corporation signed a 10-year noncancelable lease for certain machinery. The terms of the lease called for Sandhill to make annual payments of $175015 at the end of each year for 10 years with the title passing to Sandhill at the end of this period. The machinery has an estimated useful life of 15 years and no salvage value. Sandhill uses the straight-line method of depreciation for all of its fixed assets. Sandhill accordingly accounted for this lease transaction as a financial lease. The lease payments were determined to have a present value of $1229232 at an effective interest rate of 7%. With respect to this lease, Sandhill should record for 2021 O interest expense of $86046 and amortization expense of $81949. O lease expense of $86046. interest expense of $72046 and amortization expense of $122923. interest expense of $81949 and amortization expense of $68615.