Carla Vista Company, a dealer in machinery and equipment, leased equipment to Sands, Inc., on July 1, 2021. The lease is appropriately accounted for as a sales-type lease by Carla Vista and as a finance lease by Sands. The lease is for a 10-year period (the useful life of the asset) expiring June 30, 2031. The first of 10 equal annual payments of $898000 was made on July 1, 2021. Carla Vista had purchased the equipment for $5600000 on January 1, 2021, and established a list selling price of $7550000 on the equipment. Assume that the present value at July 1, 2021, of the rent payments over the lease term discounted at 8% (the appropriate interest rate) was $6508000. Assuming that Sands, Inc. uses straight-line depreciation, what is the amount of amortization and interest expense that Sands should record for the year ended December 31, 2021
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