On January 1, 2021, Yancey, Inc. signs a 10-year noncancelable lease agreement to lease a storage building from Holt Warehouse Company. Collectibility of lease payments is reasonably predictable and no important uncertainties surround the amount of costs yet to be incurred by the lessor. The following information pertains to this lease agreement. (a) The agreement requires equal rental payments at the end of each year. (b) The fair value of the building on January 1, 2021 is $5,000,000 (c) The building has an estimated economic life of 10 years, with no residual value. (d) At the termination of the lease, the title to the building will be transferred to the lessee. (e) Yancey's incremental borrowing rate is 15% per year. Holt Warehouse Co. set the annual rental to insure a 12% rate of return. The implicit rate of the lessor is unknown to Yancey. What is the annual lease payment? (Rounded to the nearest dollar) a) $790,108 b) $887,703 c) $500,000 d) $884,921 On January 1, 2021, Lang Corporation leased a ship from Fort Company for an eight- year period expiring December 30, 2029. Equal annual payments of $500,000 are due on January 1 of each year, beginning with January 1, 2021. The lease is properly classified as a finance lease on Lang 's books. The present value on January 1, 2021 of the eight lease payments over the lease term discounted at 10% is $2,934,213. Assuming all payments are made on time, the amount that should be reported by Lang Corporation as the interest expense for this lease for 2022 was a) $243,421. b) $293,421. c) $500,000. d) $217,763