Question 8 (-110) On January 1 of the current year, Tell Co. leased equipment from Swill Co. under a 9-year lease. The lease does not contain a bargain purchase option or a transfer of ownership. The equipment had a cost of $400,000 and an estimated useful life of 15 years. Semiannual lease payments of $44,000 are due every January 1 and July 1. The present value of lease payments at the discount rate of the lease of 12% was $505,000, which equals the fair value of the equipment. What amount should Tell recognize as depreciation expense on the right-of-use asset in the current year? 1 $26,667 $33,667 $44,444 4 $56,111