On January 1, 2021. Ivanhoe Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for Ivanhoe to make annual payments of $190000 at the beginning of each year for 5 years with title passing to Ivanhoe at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Ivanhoe uses the straight-line method of depreciation for all of its forced assets. Ivanhoe accordingly accounts for this lease transaction as a finance lease. The lease payments were determined to have a present value of $792275 at an effective interest rate of 10% With respect to this capitalized lease, for 2021 Ivanhoe should record:. 1. Interest expense of $60228 and depreciation expense of $158455. 2. Interest expense of $95000 and depreciation expense of $192410. 3. Interest expense of $60228 and depreciation expense of $113182 rent expense of $190000.