Use the following information to answer the next_4_questions. Odom Company leased a machine to Rapp Corp. on January 1, 2016. The lease is for a 10-year period. The economic life of the equipment is 15 years. Odom purchased the machine for $80,000 and expects to cam a 10% return on its investment bused on an annual rental of $11,836. The first payment is due January 1, 2016. At the end of the lease, title transfers to Rapp Corp. The present value of the minimum lease payments is $80,000. The fair market value of the equipment is $90,000. What type of lease is this to Odom Company? a. direct financing b. sales-type c. operating d. right-to-use This lease is a capital lease to Rapp Corp. under which criteria? a. 75% rule b. 90% rule c. title transfers d. bargain purchase How- much interest revenue will Odom Company recognize during 2016? a. $8,000 b. $9,000 c. $3,836 d. $6,816 How much interest expense will Rapp record in 2017? a. $6,816 b. $6,314 c. $3,836 d. $7,414