34 At January 1.2024, Caf Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $23,000 beginning January 1,2024 , the beginning of the lease, and on each December 31 thereafter through 2031. The equipment was acquired recently by Crescent at a cost of $198,000 (its fair value) and was expected to have a useful iffe of 12 years with no salvage value at the end of its life. Because the lease term is only nine years, the asset does have an expected residual value at the end of the lease term of $123,313. Both (a) the present value of the lease payments and (0) the present value of the residual