Question 5 Crane Company, a dealer in machinery and equipment, leased equipment to Sands, Inc., on July 1, 2021. The lease is appropriately accounted for as a sales-type lease by Crane and as a finance lease by Sands. The lease is for a 10-year period (the useful life of the asset) expiring June 30, 2031. The first of 10 equal annual payments of $818000 was made on July 1, 2021. Crane had purchased the equipment for $5200000 on January 1, 2021, and established a list selling price of $7150000 on the equipment. Assume that the present value at July 1, 2021, of the rent payments over the lease term discounted at 8% (the appropriate interest rate) was $5928000. Assuming that Sands, Inc. uses straight-line depreciation, what is the amount of amortization and interest expense that Sands should record for the year ended December 31, 2021? O $3575000 and $204400 $3575000 and $156000 $296400 and $204400 $296400 and $237120 Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 1 used SUBMIT