On January 1, 20X6, Funny Bones Inc (FBI) entered into a lease agreement contract that entitled it to use equipment. Details of the contract follow: $7,000 $500 7% 9% Lease payment, not including non-lease component Non-lease component (maintenance agreement) Implicit rate in the lease readily determinable by lessee) Incremental borrowing rate Lease term Economic life of equipment Guaranteed residual value Expected pay-out on residual value guarantee Option to purchase Fair value of equiment at end of lease term First annual payment due 3 years 6 years $5,000 $3,000 $1,000 $8,000 Jan 1, 20X6 FBI accounts for the lease and non-lease components in the contract as separate lease components. What is the amount that FBI will record for interest expense for its year-ended December 31, 20X6? O a $1,006 Ob.$943 Oc.$1,057 Od $1,443