Question: On January 1, 2022, Hessel Company leased a manufacturing machine from Noel Corporation. There is no ownership transfer or purchase option at the end of the lease term. Under the contract, Hesselis required to make 8 annual payments of $35,000 on January 1 of each year starting January 1, 2022. The lease term is 8 years. The machine's economic life is 10 years. The lessee's incremental borrowing rate was 6%, which is the same as the lessor's implicit rate. The present value of the lease payments is $230,383. Suppose the lease is classified as a finance lease. Which of the following is correct for the journal entry (or entries) recorded on December 31, 2022 by Hessel Company (lessee)? Debit lease obligation by $35,000. Debit interest expense by $11,723. Debit rent expense by $35,000. Debit amortization expense by $11,723.