On January 1, 2017, Zingo Company signed a contract to lease Bingo Company an equipment has a useful life of 6 year and salvage value of $3000. According to term of contract Bingo should pay annual...

On January 1, 2017, Zingo Company signed a contract to lease Bingo Company an equipment has a useful life of 6 year and salvage value of $3000. According to term of contract Bingo should pay annual payment of $8,000 to Zingo, and discount rate is 9%, Assuming the salavge is guaranteed and payment is at beginning of each year, compute the interest expense and interest revenue should be recorded in Zingo and Bingo companies on Dec.31, 2017?

a.
Interest expense $3053, interest revenue $3053.

b.
Interest expense $0, inyerest revenue $0.

c.
Interest expense $3053, interest revenue $3228.

Please solve the question ASAP with detailed explanation.