When the total expenses over the life of an operating lease are compared to the total expense over the life of a finance lease, one will find that: A. The expenses of the finance lease and operating lists are equal. B. The expenses of the finances are greater than the expenses of the operating lease. C. The expenses off an operating lease are greater than the expenses of a finance lease. D. No meaningful comparison can be made. 18. Capital Leasing acquires equipment and leases it to customers under long term sales-type leases. Capital earns interest under these arrangements at 6% annual rate. Capital purchased a machine and then leased it for $342,400 under an arrangement that specified annual payments to be received for five years, beginning at the commencement of the lease. The lessee had the option to purchase the machine at the end of the lease term for $49,650 when it was expected to have a residual value of the $99,300. Calculate the amount of annual lease payments. (Do not round immediate calculations. Round your answer to the nearest whole dollar.) A. $72,477. B. $68,374. C. $76,683. D. $87,803. 19. XYZ Company leased equipment to Best Corporation under at lease agreement that qualifies as a finance lease. The cost of the asset is $120,000. The lease contains a bargain purchase option that is effective at the end of the fifth year. The expected economic life of the asset is 10 years. The lease term is 5 years. The asset is expected to have a residual (salvage) value of $2,000 at the end of 10 years period using the straight-line method, what would Best record as annual amortization of the right-of-use asset? A. $23,600. B. $12,200. C. $11,800. D. $12,000.