Sheridan Corporation entered into an agreement with Cheyenne Rentals Co$.$ on January $1,2025$ to lease a machine to be used in its manufacturing operations. The following data pertain to the agreement:

$($a$)$ The term of the noncancelable lease is $3$ years with no renewal option. Payments of $$664687$ are due on January $1$ of each year.

$($b$)$ The fair value of the machine on January $1,2025,$ is $$1850000.$ The machine has a remaining economic life of $10$ years, with no salvage value. The machine reverts to the lessor upon the termination of the lease.

$($c$)$ Sheridan depreciates all machinery it owns on a straight$-$line basis.

$($d$)$ Sheridan$$s incremental borrowing rate is $10\%$ per year. Sheridan does not know the $8\%$ implicit rate used by Cheyenne.

$($e$)$ Immediately after signing the lease, Cheyenne finds out that Sheridan Corp. is the defendant in a suit that is sufficiently material to make collectibility of future lease payments doubtful.

If Sheridan accounts for the lease as an operating lease, what expenses will be recorded as a consequence of the lease during the fiscal year ended December $31,2025?($Round factor value calculation to $5$ decimal places, e$.$g$.1\mathrm{.}25124.)$

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Select answer from the options below

a$.$ Amortization Expense of $664687$

b$.$ Amortization Expense and Interest Expense of $664687$

c$.$ Lease Expense of $664687$

d$.$ Interest Expense of $664687$