On January 1, 2021, WandaVision Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for Wandavision to make annual payments of $400,000 at the beginning of each year for five years beginning on January 1, 2021 with the title passing to Wanda Vision at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. WandaVision uses the straight line method of depreciation for all of its fixed assets. Wanda Vision accordingly accounts for this lease transaction as a finance lease. The lease payments were determined to have a present value of $1,667,944 at an effective interest rate of 10%. In 2021, WandaVision should record interest expense and amortization expense of Interest Expense 5166,794 Amortization Expense 5333,580 Interest Expense 563,397 Amortization Expense $333,589 Interest Expense 563,397 Amortization Expense $238.278 Interest Expense S273,206 Amortization Expense $238.278 Interest Expense 5166,794 Amortization Expense $238.278 Interest Expense $126,794 Amortization Expense 5333,589