Pharoah Co. leased equipment to Riggs Company on May 1, 2021. At that time the collectibility of the lease payments was not probable. The lease expires on May 1, 2022. Riggs could have bought the equipment from Pharoah for $5200000 instead of leasing it. Pharoah's accounting records showed a book value for the equipment on May 1, 2021, of $4500000. Pharoah's depreciation on the equipment in 2021 was $550000. During 2021, Riggs paid $1068000 in rentals to Pharoah for the 8-month period. Pharoah incurred maintenance and other related costs under the terms of the lease of $104000 in 2021. After the lease with Riggs expires, Pharoah will lease the equipment to another company for two years. Ignoring income taxes, the amount of expense incurred by Riggs from this lease for the year ended December 31, 2021, should be O $550000. O $996000. O $1068000. $446000