10:26 Exercises ill 5G 499 Q A E20.1 (LO 1, 4) (Lessee Entries; Finance Lease with No Residual Value) Joe's Journeys enters into an agreement with Traveler Inc. to lease a car on December 31, 2024. The following information relates to this agreement. 1. The term of the non-cancelable lease is 3 years with no renewal or bargain purchase option. The remaining economic life of the car is 3 years, and it is expected to have no residual value at the end of the lease term. 2. The fair value of the car was $15,000 at commencement of the lease. 3. Annual payments are required to be made on December 31 at the end of each year of the lease, beginning 10:26 ill 56% 49 Value) Joe's Journeys enters into an agreement with Traveler Inc. to lease a car on December 31, 2024. The followin information relates to this agreement. 1. The term of the non-cancelable lease is 3 years with no renewal or bargain purchase option. The remaining economic life of the car is 3 years, and it is expected to have no residual value at the end of the lease term. 2. The fair value of the car was $15,000 at commencement of the lease. 3. Annual payments are required to be made on December 31 at the end of each year of the lease, beginning December 31, 2025. The first payment is to be of an amount of $5,552.82, with each payment increasing by a constant rate of 5% from the previous payment (i.e., the second payment will be $5,830.46 and the third and final payment will be $6,121.98).