21. XYZ purchased a machine for $400,000 with a useful life of 10 years and no salvage value. XYZ leases the machine to ABC under an operating lease. ABC pays $114,500 in rental payments per year. The lease increases XYZ's annual net income by - 22. On January 1, ABC signed a 5-year finance lease requiring annual payments of $10,840 beginning immediately. Appropriately discounted at 5%, the PV of lease payments is $49,278. Interest expense accrued on December 31 of the first year is 23. ABC leased a building from XYZ. The lease transfers legal ownership to ABC at lease-end. The present value of lease payments is $275,137 at signing. The useful life of the asset is 10 years and the lease term is 5 years. ABC's amortization expense in year 1 of the lease is