Paragraph 19. Executory costs include: E a) Finance expense incurred. b) Annual lease rentals paid. c) Insurance premiums. d) Leasehold improvements. LO No Spac. Heading 1 Heading 2 Tite Subar Styles 20. RST entered into a financing lease agreement, which required rentals of $9,600, each year-end. The lease term was for ten years and a 14% rate of return is expected by RST. The cost of the machine for RST was (rounded to the nearest dollar): a) $50,075 b) $82,560 c) $96,000 d) $109,440 21. Under a sales-type lease, the difference between the cost of the leased asset and the lease receivable is accounted for by the lessor and lessee as follows: Lessee Not recognized Not recognized Lessor 1 Gross margin 2 Interest revenue 3 Gross margin 4 Interest revenue Included in capitalization of the leased asset Interest expense Included in capitalization of the leased asset Gross margin a) Choice b) Choice 2 c) Choice 3 d) Choice 4 e) Choice 5