On January 1, Fox Co signed a 7-year lease for equipment having a 10 year economic life. The present value of the monthly lease payments equals 80% of the equipment's fair value. The lease agreement provides for neither a transfer of title to Fox nor a bargain purchase option. In the income statement during the year of the lease, Fox will report:

Question 1 options:

	Amortization Expense
	Interest Expense
	Lease Expense
	Amortization and Interest Expense,